Ticor Title Company


Mechanic Lien Claim - Loretta's Title Policy Covered a Mechanic Lien Claim

Loretta loved her new home. She was especially thankful for the fact that the seller replaced the roof so she would not have to spend money for the unexpected surprise of a leaking roof. She had that problem with her prior home. Much to her surprise as it turned out the seller never paid the roofing contractor. Surprise turned to frustration when the roofing contractor insisted he had a mechanic lien (you might call it a construction lien) which he could foreclose against Loretta's new home.

Imagine the relief when Loretta learned she could tender the problem to her title insurer to take care of the whole problem. She had a comprehensive ALTA Residential Policy that provided coverage for such liens. Her insurer contacted the roofing contractor and after a few months of negotiation the lien claim was settled and resolved. In the end Loretta was safe and secure under her new roof and she never had to fret over the contractor's mechanics lien claim.