🏠 Closing on a new home? There's a hidden risk most buyers never see coming.

Construction liens can surface at the worst possible moment — right before closing — and they have the power to derail the entire transaction.

Here's how it happens:

A builder breaks ground before the mortgage is even recorded. That means contractors, subcontractors, and material suppliers can have legal priority over the lender — and over you. If any of them went unpaid, they can file a lien against your new home, even if you had nothing to do with it.

Even more unsettling? The seller may never have filed a notice of completion, which means the window for filing liens is still wide open at closing.

What does this mean for you as a buyer?

When a title examiner finds a construction lien — or signs that work was done without confirmed payment — the title insurer will refuse to issue a clean policy. No title insurance means no lender funding. The result: delays, renegotiated terms, money held in escrow, or a deal that falls apart entirely.

Resolving these liens before closing takes time and money. Lien waivers, payoffs, surety bonds, indemnity agreements — none of it is simple, and none of it was in your original budget.

The good news? With the right legal team reviewing your transaction early, these issues are manageable — and often avoidable.

Have questions or need of assistance on a transactions, call our staff at (504)834-7171 or email to joseph@qtsnola.com.