[External Webinar] Construction Loan Funding and Title Insurance: Best Practices in Disbursement and Documentation

Kyle Niewoehner, Esq., Senior Counsel at Fortra Law, co-presented a BARBRI CLE webinar on June 16, 2026, alongside Jeffrey R. Escobar, Partner at Sheppard. BARBRI is a trusted global leader in legal education and professional development.

The webinar examined construction loan funding mechanics, disbursement procedures, and the role of title insurance throughout the life of a construction loan. Kyle focused on construction loan funding and risk management, highlighting best practices lenders can use to protect their interests throughout a construction project.

Key topics Kyle covered included:

• Construction Loan Funding: How construction loans are progressively funded based on completed work rather than fully funded at closing.
• Construction Loan Risks: Common risks such as cost overruns, construction delays, unpaid contractors, insufficient funds, incomplete construction, and repayment concerns.
• Loan Documentation: Key documents used to manage construction lending risks, including construction loan agreements, mortgages, guaranties, assignments, bonds, and environmental indemnities.
• Disbursement Requirements: Requirements for payment applications and regular loan advances, including inspections, invoices, lien waivers, and borrower certifications.
• Final Advance Requirements: Conditions that should be satisfied before the final loan advance, including certificates of occupancy, final surveys, lien releases, and completed plans.
• Change Orders, Contingencies, and Retainage: Best practices for managing changes to construction budgets, cost overruns, and funds retained to address unforeseen costs.
• Title Insurance and Lien Priority: The importance of maintaining appropriate title insurance coverage and protecting the lender's lien priority as additional funds are disbursed.
• Due Diligence: Pre-closing and ongoing review of title, surveys, permits, zoning, construction budgets, schedules, contractors, environmental matters, and borrower entities.
• Default and Project Failure Remedies: Potential remedies available to lenders when a construction project encounters problems, including foreclosure, receivership, UCC sales, enforcement of guaranties, and claims against surety bonds.
• Risk Management Throughout Construction: How careful due diligence, properly drafted loan documents, and controlled disbursement procedures can help lenders mitigate risk and respond effectively when construction projects encounter challenges.

Watch the Webinar

The webinar is available as an on-demand CLE course through BARBRI, allowing legal professionals to purchase and access the recording after the live presentation. View the webinar and purchase access through BARBRI.