Sample Commitment Requirement Language
For Lien Forms (Revised April 2013)

For insurance regarding priority of conveyance by seller to proposed insured owner over potential liens for labor, services or materials, including surveyors, architects, engineers and rental equipment  (herein "liens") of seller, or priority of proposed insured lender's deed of trust (once recorded) over said liens of seller and/or construction borrower, receipt of applicable NCLTA form (or substantially similar form approved by Company counsel prior to closing), completed and executed by all required parties in compliance with the applicable form's instructions regarding same, as follows:

For projects where labor, services or materials are first contracted for before April 1, 2013, or projects where no lien agent is required by NC law:

NCLTA Form 1, if no recent construction or addition of improvements on land, no executory contracts for improvements on land and no construction loan by signing owner or borrower is contemplated;

NCLTA Form 2, if construction on the land was recently completed;

NCLTA Form 3, if construction is in process or immediately contemplated (for loan, including construction financing).

For projects where labor, services or materials are first contracted for April 1, 2013, or later, wherein a lien agent has been appointed:

NCLTA Form 5, Owner Affidavit and Indemnity Agreement when construction has been completed, is contemplated or currently underway and a mechanics lien agent has been appointed (in conjunction with NCLTA Forms 6 and 7);

NCLTA Form 6, for waiver and release of lien rights by Potential Lien Claimants having filed notice(s) to lien agents  (in conjunction with NCLTA Form 5);

NCLTA Form 7, for subordination of lien rights by Potential Lien Claimants having filed notice(s) to lien agents to any deed of trust to be insured (in conjunction with NCLTA Form 5).

In addition, if the proposed purchaser will be obtaining combined purchase and construction financing from proposed insured lender as a part of the transaction to be insured where labor, services, or material are first contracted for before April 1, 2013, or where no lien agent is required by NC law, proposed purchaser (construction loan borrower) must also provide duly completed and executed NCLTA Form 3.