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My contractor refuses to execute and return to my home/loan closing agent or title company the termination of notice of

Florida

My contractor refuses to execute and return to my home/loan closing agent or title company the termination of notice of commencement. I am being told we must have this to close our loan. What are my options?

2 replies

Aug 20, 2020
If there is a loan, do not file the notice of commencement before the mortgage is recorded! This results in the construction liens taking priority over the mortgage. Too many homeowners file their NOC before finishing the mortgage process because they mistakenly believe they must file the NOC to get their building permit. They do not! And, in fact, in many cases, they should not! The filing has to be within 90 days of when the project begins. In other words, you need to get the NOC recorded before work begins on the project, but not too soon before. Work must start within 90 days from the NOC’s filing. Property owners must get the Notice of Commencement filed with County public records before the start of the job, but after the building permit is pulled. It is a common misconception and mispractice that it's required to file the NOC before getting the building permit.
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Helpful
Aug 20, 2020
On construction loans, the construction loan is recorded before the NOC. The problem is when obtaining a traditional mortgage to pay off the construction loan and the NOC was recorded first in time.
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