For a builder, good title work should begin well before the finished home reaches the closing table. The title to the land, the builder's ownership entity, recorded easements, subdivision restrictions, plats, development documents, mortgages, and other recorded interests can all affect the eventual sale. Discovering a title problem after a buyer is under contract can create an avoidable delay.

Construction also adds another title consideration: potential mechanics' and materialmen's liens. Alabama law gives qualifying persons who perform work or furnish materials for improvements certain lien rights, and the priority of those liens can interact with existing mortgages and other interests. That makes coordination among the builder, lender, contractors, title company, and closing attorney especially important.

For builders developing multiple lots, consistency matters as well. Legal descriptions, lot numbers, entity names, releases from development loans, and recorded documents should be reviewed carefully from one closing to the next. Building the house may be the largest part of the project, but clean title is what allows the finished product to be sold.

If you are a builder in Madison County or North Alabama and have questions about title, closings, or recorded documents, Alabama Property & Estate Law, LLC is available to assist. Call us at 256-489-0038 to schedule a consultation.