1 | NC Connection | June 2014 We Know North Carolina invtitle.com As our economy continues to recover from the recent recession, we are beginning to see increased commercial and residential land development activity. Developers have often been sitting on the sidelines for a while or are new to North Carolina. Through conversations with commercial contractors, Investors Title has learned recently that many of the developers are unaware that they must have a lien agent for their development project and that they must appoint the lien agent prior to the time they sign their first contract for improvement of the land (see N.C. Gen. Stat. Section 44A- 11.1(a)). The contractor often feels uncomfortable instructing the developer of the legal requirements and does not want the developer to feel that they are sharing this information because they anticipate the need to assert a lien against the new project. In response to this concern, Investors Title has created a bulletin for land developers explaining the new legal requirements. This information sheet can be used by your contractor clients or by you to provide a quick and simple explanation of the new requirements and to provide information regarding where the land developer can find assistance with the lien agent process. We urge you to distribute this helpful document to your commercial contractor and land development clients to inform them of the new lien Land Developers... 1 Year One: MLA... 2-6 A.M. Best Rang 5 Online Rate Calc. 6 NC Fun Facts 6 Claims Corner 7-8 NC Fun Facts 7 CFPB Resources 8 Branch Profile 9 Investors Trust: THC v. McCrea 9 Land Developers Need to Appoint Lien Agent ASAP! by Steve Brown, Esq. VP—Communications and Marketing Development [email protected]THE NC CONNECTION agent requirements and to direct them to the resources they may need. A printable copy of the bulletin may be found here. The same document is found by navigating to invtitle.com | resources | NC | Products and Services | LiensNC Guide. “...many of the developers are unaware that they must have a lien agent ...” Online Rate Calculator Changes Effective June 30, 2014 See page 5 for details.
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Land Developers Need to Appoint Lien Agent ASAP! · Over the past year, ... parcel where construction is ... Contractor Affidavit, Waiver of Liens and Indemnity Agreement.
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1 | NC Connection | June 2014 We Know North Carolina invtitle.com
As our economy continues to
recover from the recent
recession, we are beginning to
see increased commercial and
residential land development
activity. Developers have often
been sitting on the sidelines for
a while or are new to North
Carolina. Through
conversations with commercial
contractors, Investors Title has
learned recently that many of
the developers are unaware that
they must have a lien agent for
their development project and
that they must appoint the lien
agent prior to the time they sign
their first contract for
improvement of the land (see
N.C. Gen. Stat. Section 44A-
11.1(a)). The contractor often
feels uncomfortable instructing
the developer of the legal
requirements and does not want
the developer to feel that they
are sharing this information
because they anticipate the
need to assert a lien against the
new project. In response to this
concern, Investors Title has
created a bulletin for land
developers explaining the new
legal requirements. This
information sheet can be used
by your contractor clients or by
you to provide a quick and
simple explanation of the new
requirements and to provide
information regarding where the
land developer can find
assistance with the lien agent
process. We urge you to
distribute this helpful document
to your commercial contractor
and land development clients to
inform them of the new lien
Land Developers... 1
Year One: MLA... 2-6
A.M. Best Rating 5
Online Rate Calc. 6
NC Fun Facts 6
Claims Corner 7-8
NC Fun Facts 7
CFPB Resources 8
Branch Profile 9
Investors Trust: THC v. McCrea
9
Land Developers Need to Appoint Lien Agent ASAP! by Steve Brown, Esq. VP—Communications and Marketing Development [email protected]
THE NC CONNECTION
agent requirements and to direct
them to the resources they may
need. A printable copy of the
bulletin may be found here. The
same document is found by
navigating to invtitle.com |
resources | NC | Products and
Services | LiensNC Guide.
“...many of the
developers are
unaware that they
must have a lien
agent ...”
Online Rate Calculator Changes Effective June 30, 2014
6 | NC Connection | June 2014 We Know North Carolina invtitle.com
Recently, revisions were made
to NCLTA Forms 5, 6, and 7 that
became effective in February of
2014. Questions have arisen
about whether the title industry
will accept the previous version
of these forms for a closing
occurring after February of
2014. Investors Title will
continue to accept the previous
version of the forms as the
revisions are not of a nature to
negate the protections for a title
underwriter relying on them to
provide coverage for loss
relating to possible unfiled
mechanics’ liens. You have
probably already been using the
form for the owner. Second,
there will be projects like the
subdivision infrastructure work
previously mentioned that were
begun prior to April 1, 2013 or
where the cost of improvements
is less than $30,000 or
constitute improvements to the
owner’s residence. In these
cases, no lien agent will be
appointed and the NCLTA Form
2 – Construction Recently
Completed or NCLTA Form 3 –
Construction in Process or
Immediately Contemplated will
be used depending on the
nature of the transaction.
THE NC CONNECTION
new versions of Forms 5, 6, and
7, but if you receive the old
version of these forms (dated
March of 2013) for an upcoming
closing, they are still acceptable
for the provision of mechanics’
lien coverage.
When it comes to choosing
which mechanics’ lien affidavits
to use, an understanding of the
facts surrounding the
completed, current, or
contemplated construction is a
necessity. If you have questions
prior to the closing of a
transaction, please do not
hesitate to contact one of our
title attorneys to discuss further.
Year One: The Mechanics’ Lien Agent… cont. from page 5
Online Rate Calculator Changes Effective June 30, 2014
Investors Title is pleased to announce an update to the North Carolina Online Rate Calculator that is scheduled
for release June 30, 2014 at 7 PM.
The North Carolina Online Rate Calculator will feature the following changes:
1. Users will be able to select from three ALTA residential loan endorsements and include the $20 per endorsement charge in the premium calculation.
2. Users will have the option to exclude Insured Closing Letter premium from the calculation, for use in cash transactions or when no ICL coverage is required.
3. The calculator’s supplementary text was trimmed substantially to reflect the aforementioned changes
North Carolina rates include commitment premium. *Premium for Insured Closing Coverage is
included in all North Carolina rate calculations UNLESS the option for “Exclude ICL premium in
rate calculation” is selected. Typically, this checkbox would be selected when calculating
premium for owner coverage, when no mortgagee coverage amount is entered.
8 | NC Connection | June 2014 We Know North Carolina invtitle.com
More on This Topic
Claims Corner: Fraudulent Transactions… cont. from page 7
documents/notarial-and-
authentication-services-consular
-officers.html, including the
following advice:
How do you get a document
notarized overseas?
Notarizing officers at any U.S.
Embassy or Consulate abroad
can provide a service similar to
the functions of a notary public
in the United States. It is also
possible to have a document
notarized by a local foreign
notary and then have the
document authenticated for use
in the United States. In
countries that are party to the
Hague Apostille Convention, this
is a simplified process.
In conclusion, we as attorneys
need to be diligent, especially
with parties we do not know, to
see through some of these
fraudulent schemes.
~
3. A prior owner was a citizen of
a foreign country. A deed to his
neighbor, notarized overseas,
was delivered to the neighbor,
who recorded it. The neighbor,
grantee of the deed, sold the
property to our insured owners a
few months later. It was later
alleged that the first deed was a
forgery. How could this have
been prevented? When
examining deeds in the chain of
title, pay close attention to
notarizations. The US does not
recognize notaries from certain
countries, unless notarized by a
US Consulate or Embassy,
whose offices all provide notary
services. The State Department
can provide information
regarding which countries are
parties to the Hague Treaty,
under which foreign notarized
documents can be authenticated
by the US State Department.
The following website has more
information: http://
travel.state.gov/content/travel/
english/legal-considerations/
judicial/authentication-of-
THE NC CONNECTION
Investors Title has developed a
number of resources to help
prevent fraud including an
anonymous form to repot
potentially fraudulent
transactions.
Fraud Red Flags
Click here for more
example fraud
scenarios and a list
of red flags to help
with identifying
potential fraud
scenarios.
Suspected Fraud Notification
If you become aware of possible fraud, please use the form found here to notify Investors Title. You may submit this form anonymously, if desired. If you would prefer to call, mail, or fax your information, please refer to the contact information provided on the following webpage: www.invtitle.com/suspected-fraud-notification
9 | NC Connection | June 2014 We Know North Carolina invtitle.com
The Charlotte branch opened in April 1975 and is currently the largest NC Investors Title branch office with six team members. Marianne Joines, Commercial Transactions Coordinator for the Commercial Services Division, also works from the Charlotte location.
THE NC CONNECTION
A trustee is generally prohibited from engaging in transactions with trust assets that benefit the trustee personally. That principle, which most fiduciaries already know, was illustrated in a North Carolina case that developed after Richard and Lea McCrea divorced in 2008. As part of the financial settlement, Richard
agreed to provide his ex-wife and children
with housing, which Lea would lease from him. In accordance with that agreement, Richard created a trust in April 2008 that designated the children as beneficiaries. The trust named a trust company in Chicago as the initial trustee, and it also named an Illinois attorney, Richard Sawdey,
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Investors Trust Company: THZ Holdings, LLC v. McCrea as the trust protector. Richard lent funds, which he had also borrowed, to the trust for the purpose of buying a home, which the trustee did. For reasons that are not clear in the case, no mortgage was attached to the house, but the trustee did agree to repay Richard’s loan by December 2018. When the economy soured in 2008, Richard lost “all sources of his income,” and the initial trustee resigned. The trust protector then appointed Richard as the successor trustee, and soon thereafter, Richard transferred the property to himself and later to himself and his new wife as joint owners. Ultimately, one of the transferees attempted to evict Lea and the children and sell the property. The children, through Lea as their guardian ad litem, objected and filed suit against Richard, among others. The trial court ruled in their favor, returning the property to the trust and removing Richard as trustee. The appellate court, finding that Richard breached his duty of loyalty by transferring trust property to himself, affirmed.
This article is provided for informational purposes only and does not constitute legal advice.
Team members of the Charlotte branch collected close to 70 items for the Harvest Food Bank. Team members (left to right): Kim Frais, Ambrie Grant, Andie Rachels, Melissa Plummer, Kathy Coppedge, Laurie Tecza