Let me offer you all a piece of unsolicited advice: When tacking to a prior policy, read the exceptions on the policy. I tell you that, because we do. We have to. If we are tacking to a prior policy we have to underwrite it to the same extent it was underwritten previously. That means we have to pull ALL OF THE EXCEPTIONS off that policy and put them on our new commitment. So, if the prior policy excepts to ALL MATTERS OF RECORD, then we have to include the exact same exception on our policy. If the prior policy excepts for LACK OF ACCESS, then we have to follow suit. While we may both agree that exceptions like that should not be on a policy, we do see them from time-to-time. If you do not want an exception like that on your policy, well, you can’t tack to that policy. You will have to do a more expansive search or tack to an older policy in the chain that does not have the exception.
Happy hunting, Folks. 🙂
We are happy to announce that we will be supporting a wonderful organization during October in honor of Breast Cancer Awareness Month for the 3rd year in a row.
We will be donating a portion of every order sent to us in the month of October to Earlier.org.
Click on the link above to read more about Earlier.org’s mission and how they are helping women detect breast cancer sooner rather than later.
We are so happy that you all will be assisting us with this great endeavor again!
Christine’s koozie is floating down the French Broad River!
A seven letter word containing thousands of letters?
Send your guesses to Summer by clicking here.
This was last month’s riddle and answer:
What word becomes shorter when you add two letters to it?
Lien Waivers for Mechanicsmen &
Most of us remember the events of the Summer of 2013 which resulted in a modification of the Lien Law Statute (Chapter 44A). While it has been three years now, there is still some confusion in the market place concerning which Lien Waiver is to be used in any given transaction. So, I thought it might be time for a refresher.
In determining which Lien Waiver (hereinafter “LW”) to use, the first thing you have to figure out is whether you are playing by the old rules or the new rules. For ease of discussion, by “Old Rules” I mean, the rules that were in place before the modification to the statute that required the appointment of a Lien Agent. “New Rules” refers to those situations where a Lien Agent has been appointed. As you are well aware, not every closing requires the appointment of a Lien Agent. A Lien Agent must be appointed when there are improvements made to real property that are equal to or exceed the sum of $30,000.00. The vast majority of closings do not have improvements to the property at all, nevermind in excess of $30,000.00. A Lien Agent is also not required when improvements are made to an existing single-family residential dwelling unit that is occupied by the owner as a residence. Those are two examples of when we use the “Old Rules.” A third example of using “Old Rules” is when a Lien Agent was supposed to be appointed, but wasn’t. So, in conclusion, we use “Old Rules” under the following circumstances:
(Stated another way, if no Lien Agent was appointed, we are playing by the “Old Rules.”) The Old Rules require either a Form 1, Form 2 or Form 3 LW depending on the circumstances. If there was no construction prior to closing, you will have the Seller sign a Form 1 LW and call it a day. If there was recent construction, prior to the closing, then the Seller will sign a Form 2 LW. The Form 2 LW will also be signed by ANYONE THE OWNER CONTRACTED WITH TO IMPROVE THE PROPERTY. The General Contractor is the most obvious vendor, but Owners contract with other vendors all the time. Landscapers and Audio-Visual providers are two examples of vendors that often contract directly with the Owner. All of which will have to sign the Form 2 LW. The analysis goes from the sublime to the ridiculous when the GC is also the owner of the real property. Remember that the statute affords lien rights to anyone who CONTRACTS WITH THE OWNER. If the GC owns the dirt, then that means that an awful lot of vendors will have lien rights. This fact pattern will apply when the owner fails to properly appoint a Lien Agent for whatever reason. Where Form 2 is a Waiver of rights, Form 3 is a subordination. When would you use a Form 3 LW you ask? The main fact pattern that comes to mind is when you have an owner of property renovating their current dwelling where construction activities have begun before the construction deed of trust goes on record. In that case, the GC has lien rights superior to the pot of money that will be used to pay him. Therefore, the GC will be willing to subordinate his lien rights – using the Form 3 LW – to the deed of trust of said lender.
If a Lien Agent is appointed, then we are using “New Rules.” If a Lien Agent has been appointed, the only parties entitled to lien the property are those that preserve their lien rights by filing what’s called a Notice of Potential Lien Agent, which you will find by checking the www.LiensNC.com website. General Contractors and Design Professionals have their lien rights preserved by the statute and do not have to file a Notice of PLC. New Rules are easy (by design). If a Lien Agent has been appointed for a project, the Owner of the real property will always sign a Form 5 LW. Always. Let me say that again. . .always. In addition to getting a Form 5 LW from the Seller, you will obtain a Form 6 LW from the following persons:
That’s it. Easy peasy. Form 7 is a subordination, similar to Form 3. Form 7 generally applies to large developments when work has begun before the Development Loan’s Deed of Trust has been recorded.
None of this is intended to discourage a phone call or an e-mail message from you to me. If you want to run a particular fact pattern by me and confirm which LW to use, please feel free to do so. I am happy to do that for you.
Sal Balsamo – Then & Now
A professional baseball player.
I really liked the X-men as a kid. Wolverine was my favorite character.
When I was around 6 or 7, I got up in the middle of the night claiming I could not sleep because I was hungry. My Dad suggested I try counting sheep. Apparently, I told him that I tried that, but that they kept turning into lamb chops.
I was always fidgeting, whether it was bouncing my legs or tearing up paper with my fingers. One time, my Dad got furious at me because he assumed that I’d picked at the back of the driver seat in our car thereby creating these little holes in the leather. He felt pretty awful when he later caught my sister making the holes with her teeth.
I had many nicknames as a child. Some sanctioned and others tolerated. I’ve been called Sal Monella, Salad, Sally and Salvation by my friends at various times. My Mom and Sisters would call me Salvuccio, (they still do) which translates from Italian to English as “Little Salvatore.”
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For more Football Funnies LIKE our
Sal’s World Famous
Carne Asada Marinade
(perfect for football season)
1 skirt steak or 2 hanger steaks
Juice of 1 lime
1/4 cup olive oil
1/4 cup minced cilantro
1-2 Serrano chilles, minced (to taste)
1 tablespoons minced garlic
1 teaspoons sugar
1/2 teaspoons ground coriander seed
1/2 teaspoons Mexican oregano
1/4 teaspoons ground cumin seed
2 teaspoons kosher salt (less if using table salt)
Black pepper to taste
Mix all of the ingredients together and put in a plastic bag with the meat. Marinate for 24 hours then cook meat to the desired temperature.
Makes 8-10 tacos