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What is a construction disbursing?
Construction disbursing is the vehicle utilized by owners and/or lenders to obtain construction draws and title insurance coverages. Entered into by and among at least three parties (Including FNTIC, as Escrowee), these written agreements provide for the deposit and disbursement of funds used to pay the cost of the construction of improvements to the land and, if so provided, related development costs.
What are the different types of Construction Disbursing Services available?
Construction Loan Escrow: This type of escrow provides that the Escrowee be prepared to furnish a Lender’s Title Policy and date down endorsements (to the extent such endorsement is available) to provide interim title insurance assuring the lender as to the validity, enforceability, and priority of its mortgage lien limited to the extent of the mortgage proceeds disbursed and to the extent such priority exists by law.
Owner’s Construction Disbursing with Insurance (aka “Armour Note”): Similar to the Construction Loan Escrow, this type of escrow is used when there is no loan. This type of escrow provides that the Escrowee be prepared to furnish an Owner’s Title Policy and date down endorsements (to the extent such endorsement is available) to provide mechanic’s lien coverage to the extent of the amount of funds disbursed through escrow and also to the extent of lien waiver documentation is reviewed by Escrowee.
Owner’s Construction Disbursing without Title: This escrow is used when there is no Lender or Owners Title Policy. In this instance, the Escrowee provides disbursement services only, yet the documentation is collected and reviewed is the same as the Construction Loan Escrow.
Outside Interim Certification: This escrow is used on those occasions when the Lender wants to make the disbursement of their construction loans themselves, yet requires title insurance coverage to protect the priority of their mortgage. The same documentation is required for an Outside Interim as for a Construction Loan Escrow.
How does a typical construction disbursing operate?
The following is a typical step-by-step process for a Construction Loan Escrow:
Client places an order for title insurance with their Sales Representative. The construction loan closes and the client requests a Construction Loan Escrow.
A Construction Disbursing Officer in the National Commercial Services Construction Disbursing Department is assigned to the project.
The client discusses the specifics of the project with the Construction Disbursing Officer and receives a packet of forms, including a request for any additional underwriting requirements, if necessary, and an Escrow Agreement. The client returns the signed Escrow Agreement to the Construction Disbursing Officer, plus additional documentation, if needed.
Monthly construction draws commence with the submission to the Construction Disbursing Officer of an Owners Statement and General Contractor Statement, and all other documentation required by the Escrow Agreement. The Construction Disbursing Officer reviews the documentation and coordinated with the Lender. If the documents are acceptable, funds are disbursed and the endorsement to the Lender’s Title Policy is issued.
Upon completion of the final disbursement, the Construction Disbursing Officer will issue a final endorsement to the policy (if required) and will close out the escrow.
Do you conduct construction disbursing services just for commercial properties?
The National Commercial Services Construction Disbursing Department is able to provide construction disbursing services for commercial, industrial, retail, hospitality, governmental, institutional and agricultural properties.
Do you conduct construction disbursing services just for Denver, CO properties?
The National Commercial Services Construction Disbursing Department provides construction disbursing services for all 50 states.
For which underwriters can the National Commercial Services Construction Disbursing Department provide service?
The National Commercial Services Construction Disbursing Department can be an Escrowee for policies issued by any subsidiary in the Fidelity National Title Group, including Fidelity National Title Insurance Company, Commonwealth Land Title Insurance, Chicago Title Insurance Company, and Alamo Title Insurance.
What are the benefits in working with the National Commercial Services Construction Disbursing Department?
Our seasoned staff members represent over 165 years of combined construction disbursing experience and knowledge to help you with your construction project.
What type of agreements and forms are needed to initiate a construction disbursing?
For any escrow in which National Commercial Services Construction Disbursing Department is to act as Escrowee, a fully executed, written Escrow Agreement is required. The forms of these agreements are specific to each type of Construction Disbursing and some may require preapproval by Underwriting.
Additionally, for any escrow in which title insurance is required, a title order must be opened and in place before the escrow agreement can be signed by the Escrowee.
What are the typical forms needed from the owner, general contractor and subcontractors for a construction disbursing?
Every escrow typically requires an Escrow Agreement, Owner’s Sworn Statement, General Contractor’s Sworn Statement, Owner’s Approval, Lender’s Approval [CAR] (if a lender is a party to the agreement), Architect’s Certification, Partial or Final waivers and W9 forms. Depending on the circumstances, we may require Indemnities from the owner and general contractor.
Who should we contact to initiate a construction disbursing with the National Commercial Services Construction Disbursing Department?
For further information on the services provided by the National Commercial Services Construction Disbursing Department, contact us at
What is the National Commercial Services Group? How does it differ from all other Fidelity National Title Group companies?
The National Commercial Services (NCS) Group is the national commercial division of Fidelity National Title Insurance Group whose mission is to manage its largest, most complex, multi-site title insurance transactions throughout the United States and Caribbean. Based in Denver, Colorado, the NCS group aggregates all of its internal resources within Fidelity National Title and its affiliates and agents to offer the most comprehensive title insurance resources in any one office. Our group works with national and local boutique law firms, real estate investment trusts, banks and investments institutions, commercial, industrial and residential developers, property managers, brokerage firms and real estate owned (REO) clients. The NCS staff is personally committed to developing innovative solutions for complex escrow, construction and other real estate transactions. From title order placement to final policy issuance, the NCS Group offers unparalleled solutions, resources and service – all with a human touch.
What products and services are offered by Fidelity National Title Group?
Title Insurance for the local Denver area
Title Insurance for all 50 states nationally
Construction Disbursing Review & Disbursement
UCCPlus Insurance & Mezzanine Financing
Earnest Money Escrow & Document Deposit Escrows
1031 Exchange & IPEX Tax Deferred Solutions
National Special Projects including multistate/multisite recording solutions
National Title Information (
) website providing sample document forms, recording related fees and laws and customs for all 50 states.
What is the function of your Commercial Sales and Business Development Team?
National Commercial Services Colorado prides itself on providing the utmost customer service oriented solutions to today’s real estate transactions and issues. Our team specializes in handling transactions from the start of a transaction with competitive quotes and title order placement through all phases of the deal coordination including the underwriting and escrow closing process and, finally, through the post-closing follow-up stages of all deals including timely policy issuance.
We have a wide ranging client base including but not limited to national and local boutique law firms, real estate investment trusts, banks and investments institutions, commercial, industrial and residential developers, property managers, brokerage firms and real estate owned (REO) clients.
Our team helps coordinate seminars and webinars for our clients to help keep them apprised of any new developments and coverage changes in the title and real estate industry.
If you do not have a current NCS Colorado connection, contact us so that we can discuss how we can assist in your title related needs
Do you conduct any informational seminars or webinars for title insurance coverage and service?
We conduct regular title and escrow related seminars to help our clients keep abreast of any updated or anticipated coverage options and policy changes in the industry. We assist in introducing new associates and employees of our industry leading clients with Introduction to Title seminars which help walk them through title commitment and survey review, the escrow closing process, closing requirements and a typical closing transaction from start to finish.
We conduct informational online webinars throughout the year which highlight the current trends and upcoming changes in title related matters.
We also publish a quarterly e-newsletter which keeps ours customers apprised of upcoming National Commercial Services, Denver events, webinars and important developments in the title industry.
All of these informative solutions are available to our established clients. If you do not currently have a sales representative, please contact us and let us know more about your company so that we can include you and your team on relevant news and upcoming events.
What is Title Insurance and what benefits does it provide?
Title insurance is a form of indemnity insurance which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. With a title insurance policy, you have an indemnity contract that will reimburse you for loss in the event someone asserts a claim against your property that is covered by the policy.
How can there be a title defect if the title has been searched?
Title insurance is issued after a careful examination of documents filed in the public records. Even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners and underwriting practices. In addition to matters shown by public records, numerous other title problems may exist that are not disclosed in a search.
What does Title Insurance protect against?
Here are just a few of the most common hidden risks that can cause a loss of title or create an encumbrance on title:
Errors or omissions in recorded legal documents
Mistakes in examining title records
Fraud or forgery
Erroneous or inadequate legal descriptions
False impersonation of the true owner of the property
Forged deeds, releases or wills, instruments executed under invalid or expired power of attorney
Undisclosed or missing heirs to title
Misinterpretations of wills and deeds by persons of unsound mind
Deeds by minors
Deeds by persons supposedly single, but in fact married
Liens for unpaid estate, inheritance, income, real estate or gift taxes
What protection does title insurance provide against defects and hidden risks?
The title insurer will defend it’s insured against any lawsuit attacking title, and will either clear up title problems or compensate the insured for its loss. For a one-time premium, an owner's title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property.
What does this ultimately mean to you?
The peace of mind in knowing that the investment you've made is a safe one. And, in the event of a title defect, you have a company who has been in business for over 165 years and holds the largest claims reserves in the industry to help protect you against costly errors and omissions.
What title companies are affiliated with your operation?
NCS Colorado is a member of the Fidelity National Title Group family of companies. Our family of title insurance underwriters includes:
Fidelity National Title Insurance Company
Chicago Title Insurance Company
Commonwealth Title Insurance Company
Alamo Title Insurance Company
The Fidelity National Title Group family of companies represents the largest title insurance network in the world and our claims reserves are larger than all major competitors combined.
How can I place an order for title insurance?
Title orders can be placed by contacting your local National Commercial Services, Colorado representative at
What information is needed to initiate a title order?
The below information will greatly assist our title examination and coordination staff in promptly and properly completing the requested title commitment searches.
Transaction Type – Sale / Refinance / Construction Financing
Property Type – Commercial / Residential / Vacant
Tax Parcel Numbers and / or Legal Description
Include any Prior Title Policies or Title Commitments, if available
Purchase Price / Loan Amount
Transaction Parties: Seller / Borrower / Current Owner of Record / Buyer / Lender
Proposed Closing Date
Contact Information for Sellers / Buyers / Borrowers / Lenders / all Attorneys
Contact Information for any parties who should receive the title work once completed
What are your title insurance rates?
Title insurance rates are quoted based on the specific details of your transaction.