Construction Disbursement
Services in the Black Hills
SoDak Title Is Dedicated to Serving Pennington & Lawrence County with Expert Construction Loan Disbursement Services
Get Your Construction Project Moving
What Is Construction Loan Disbursement & Why Do You Need It?
Construction loan disbursement is a phased release of funds from a lender to pay for labor and material costs as project milestones are met.
Disbursement Services Allow SoDak Title to:
- Provide Initial Lender/Owner Construction Agreement for Services
- Process Each Draw, Ensuring That All Receipts Are Attached and Disbursement Is Properly Authorized
- Disburse Each Draw With Funds Received From Lender or Owner
- Obtain Lien Waivers From Draw Payees
- Obtain Final Lien Waivers Upon Construction Completion
- Monitor the Project for Mechanic’s Liens
- Title Update for Each Disbursement
- Endorsement to Loan Policy to Give Mechanic’s Lien Coverage for the Amounts Disbursed
Common Questions From Our Clients
If you are financing a new build or major construction project through a lender, disbursement services are typically required. Even for owner-funded projects, having a neutral third party manage the draw process provides important protection for everyone involved.
A lien waiver is a document signed by a contractor, subcontractor, or supplier confirming they have been paid and waiving their right to file a mechanic’s lien against the property for that amount.
A mechanic’s lien is a legal claim that a contractor, subcontractor, or supplier can file against a property if they have not been paid for work or materials. If left unresolved, a mechanic’s lien can cloud the title, complicate future sales or refinancing, and create significant financial and legal headaches for the property owner.
Ready to Get Your Construction Project Started?
Whether you’re buying, selling, or just exploring your options, our team is here to help. With offices in Rapid City and Spearfish, SoDak Title is ready to guide you through every step of the process. Reach out today and let’s make your next move smooth, secure, and stress-free.
