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House Construction

Commercial Real Estate
Construction Loans

Real Estate Construction Loan Services

If you are searching for commercial property to purchase, you may find that the process is more than just the seller signing the land over. 


There are many steps to making sure the property is the right fit for you and your company.  District Title helps our clients throughout this process. 


When purchasing property, District Title researches the property title, provides title insurance, maintains an escrow account, handles closing documents, and works with your lender to monitor the progression of construction.


District Title acts as a neutral party between you, the seller, mortgage lender, and insurance company. The entire construction loan process can be tough with some fairly complex requirements. Our team will work to ease your workload, ensuring the money is distributed securely - and that the terms of the construction escrow account are strictly adhered to. In other words, we provide you with the most hassle-free way of handling your real estate construction project. 


Contact the experts at District Title to learn more.



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Construction Loans



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How Construction Loans Work

A construction loan is not a mortgage. Rather, it is a short-term, high-interest loan that covers the cost of building a commercial property, including:

  • Vacant land

  • Plans and permits (including their fees)

  • Land

  • Labor

  • Building materials

  • Closing costs

The construction plans are gone over in detail before the loan is ever approved. Once each phase of construction is completed, it is reviewed and verified before funds are delivered for the materials and labor involved in the next phase. Although it depends on the lender, the title experts at District Title will generally set up an escrow account for your construction project and monitor your loan draws to ensure that everyone is following the agreement.

Benefits of Construction Loans

Choosing to get a construction loan for your piece of commercial real estate is the first step in obtaining the perfect building or finished project you are looking for. Of course, it helps that it comes with quite a few additional benefits, too. 

  • You can choose the perfect location for your building project

  • Personalize all aspects of your structure

  • Banks often have flexible terms and guidelines on these loans unlike traditional loans

  • You will only be responsible for paying the interest on the loan until the construction is completed

  • The lender may allow you to transition into a mortgage

And since your contractor will have to show the details of the construction plans in order for the loan to go through, you can feel confident that the construction process will be done in a timely manner. 

It is important to keep in mind that qualifying for a construction loan usually comes with stringent requirements. But, once you are able to meet them, you will be able to enjoy all of these rewards as your construction project commences. 

District Title works with you throughout the entire process to ensure that everything goes according to plan. 

Frequently Asked Questions

Will a title search be performed on the property? 

When you purchase a piece of property to build on, yes - a title search is necessary. The lender will almost always require it as a means of lowering their risk by making sure the title to the property is free and clear. 

Is it necessary to purchase title insurance for vacant land? 

Absolutely. If you are purchasing vacant land to build your commercial construction project, then you will want to purchase title insurance. Vacant land changes hands just like any other property - and it can encounter encumbrances, too. 

Having a title defect appear long after you’ve started building could become quite a costly problem - and a risk you won’t want to take.

What type of closing is used for construction loans? 

The type of closing will depend on the type of construction loan. Most commonly, a construction-to-permanent loan will allow you to transfer the loan into a mortgage. In this case, you would have a single-close settlement. 

Construction Worker

"District Title is the ONLY title company that I will use because I 100% trust them."

- B. Pasikhani | Client

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