If you’re in the process of purchasing a new construction home, it can be an incredible experience. A new construction home is a great way to get exactly what you’re looking for in your home purchase. From the perfect entryway to the ideal kitchen setup, you’ll love living in a home where everything is completely new and beautiful.


One problem that commonly arises during the purchase of a new construction home is to learn there is a mechanic’s lien during the title search. If this has happened to you, don’t worry.

Our team of title abstract professionals at Liberty Title in Minnesota can help you clear up a mechanic’s lien. Here’s what you need to know.


Contracting on a New Construction Home

During the process of building a new construction home, several contractors may be used to complete the job. Most home builds will be built by a real estate company who will hire a general contractor to oversee most of the construction. There will also be several subcontractors hired during the process typically.


These are just a few subcontractors that may work on a new construction home:

●         Security installation experts

●        Electricians

●        Plumbers

●        Window installers


What is a Mechanic’s Lien

There are a lot of moving parts when new construction is underway. It’s not uncommon for a bill or payment to be overlooked or postponed during the building process. Mechanic’s liens allow contractors to place a lien against the property to make sure they’re able to get paid. Suppliers, contractors, and subcontractors are all able to file a mechanic’s lien against your property. If this lien is unpaid for some reason, it will come up when your abstractor performs the title search.


What to Do About a Mechanic’s Lien

If a mechanic’s lien comes up during your new construction title search, don’t panic. This is actually far more common than most homebuyers realize. In order to complete the transfer of property, you’ll need a completely clear title free of liens. Our processors and closers can work with the seller to make sure they clear up the outstanding lien and get your title clear so you can work on picking out curtains.


Minnesota Title Closing Company

Purchasing your new construction home is one of the most exciting things you can do. There’s a lot to keep track of during the process, which is why it’s important to have a strong closing team behind you.


Our team of title closing professionals at Liberty Title in Minnesota can help you get through the process painlessly so you can focus on enjoying your beautiful new home. Connect with our title closers by calling us at 763.494.0340, or contact us to learn more about the abstracting process.