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Mechanic’s Lien Exceptions and New Premiums for Removal

Recent changes made by the Ohio Department of Insurance to title insurance rates can result in costly premiums for real estate developers who begin project construction prior to the completion of financing and the issuance of a loan or owner’s policy of title insurance.  In the past, title insurance companies would agree to delete the standard mechanic’s lien exception to an owner’s and/or  loan policy for no charge if the owner signed an indemnification agreement and provided lien waiver’s from contractors who had completed work on the project.

Effective May 1, 2013, however, Ohio title insurance agencies will now charge a substantial premium to remove the standard mechanic’s lien exception from both loan and owner’s policies of title insurance for any title order placed on or after that date.

For projects where work has already begun and thus there is a risk of loss of priority to a mechanic’s lien claimant, the premium for the removal of the standard mechanic’s lien exception for both owner’s and loan policies is now 40% of the base premium, with a minimum of $500.00.

If there is no known risk of loss of priority, there is still no charge to delete the standard mechanic’s lien exception from a loan policy.  However, for an owner’s policy, in order to remove the mechanic’s lien exception, the premium is now 10% of the base premium, with a minimum of $250.00.

As always, the pre-start of construction is still subject to strict underwriting requirements.  As a result, many title insurers reserve the right to deny the issuance of mechanic’s lien coverage subject to the underwriter’s approval.

Although it is generally a best practice for developers to wait until after issuance of the owner’s and/or loan policies before commencing construction on a project, sometimes certain circumstances may require or entice a developer to begin early. Lenders routinely require the deletion of the mechanic’s lien exception from the loan policy of title insurance.  Therefore, in these circumstances, developers will need to compare the cost of delaying construction commencement against the cost of the premiums which will be charged if the developer proceeds.

Posted on Wednesday, May 22nd, 2013 at 3:19 pm and filed under News and Press.

Estate Planning for Your Loved Ones with a Disability

Derek GrahamCOLUMBUS, OHIO (May 10, 2013)  Derek Graham, Sr. Associate at OLRB, will be a featured speaker at a free parent information night sponsored by The Alternative Center in Sunbury, Ohio.  Derek will speak on “Estate Planning for the Benefit of Loved Ones with a Disability”.  The event will take place on Wednesday, May 22, 2013 at 7:00 p.m. at the The Alternative Center which is located at 36 Harrison Street, Sunbury, Ohio 43074.  The Alternative Center offers individual education and adult services and is dedicated to the education and support of individuals with disabilities and their families.

For more information regarding this seminar, please call (740) 936-5412.

As the father of a child with special needs, Derek is keenly aware of the challenges and pitfalls that can confront individuals with a disability without proper planning.  Derek specializes in Special Needs Estate Planning and Medicaid Planning but also maintains a diverse practice in the areas of business law, civil and commercial litigation, estate planning and probate, employment and real estate law.  Derek and his family are very active in several charitable organizations whose primary function is to serve the needs of individuals with disabilities both locally and nationally.

Derek would be pleased to discuss your legal representation needs.  You can contact Derek at 614-716-0500.

Posted on Friday, May 10th, 2013 at 4:03 pm and filed under News and Press.

Eminent Domain Seminar – “Issues of Compensation”.

COLUMBUS, OHIO (May 10, 2013)  Todd Ernsberger, Shareholder of OLRB, will be a featured speaker at an eminent domain seminar in the afternoon of Thursday, May 30, 2013 sponsored by the Ohio State Bar Association.  Members of the business and legal communities will benefit from Todd’s expertise in valuing real estate, valuing loss of access and relocation as they relate to eminent domain actions.  The seminar will also cover the topics of protecting private property from government overreach and regulatory takings.

For more information regarding this seminar or to register today, please call 1-800-232-7124 or visit www.ohiobar.org.

Todd maintains a broad advisory and transactional practice at OLRB related to Business, Taxation, Real Estate, and Tax Deferred Exchanges.  In addition, Todd is an Adjunct Professor at Capital Law School, teaching Taxation of Business Entities, Taxation of Real Estate, Advanced Tax Problems and Limited Liability Companies.

Onda, LaBuhn, Rankin & Boggs, Co. LPA has been serving clients throughout Ohio since 1991. We have a unique and diverse practice to meet the various needs of our business and individual clients. Our attorneys are committed to providing our clients with quality advice and practical solutions to complex problems.  OLRB practice areas include but are not limited to: Corporate, Finance and Business Services; Commercial Litigation; Real Estate; Construction; Trusts, Estates, and Wealth Transfers; Taxation; Labor & Employment and Government Relations & Administrative Law.

OLRB would be pleased to discuss your legal representation needs. Contact Onda, LaBuhn, Rankin & Boggs Co., LPA at 614-716-0500

Posted on Friday, May 10th, 2013 at 2:50 pm and filed under News and Press.

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