Can a builder take the final draw from the bank without the clients approval? Even though the client HAS NOT approved the final inspection and work is not complete?
1 reply
Feb 24, 2020
Generally, a bank shouldn't approve a final draw unless all of the correct documentation is in order. That'd likely include project closeout documents like inspections, approvals, certifications, etc. And, a builder likely shouldn't request a final draw until the time has come to do so.
With that being said, it's possible a builder might request a draw a bit early. And, it's also possible that the lender might release the draw - even if that's done in error. If full payment has been released and there's still work to be done, it'd be wise to contact the contractor and make sure there's a concrete plan in place to make sure the remaining work is finished.