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Question: When we called the TRCC, we were told that the new notice required by HB 1038 (regarding builders and registration, etc.) did not affect lien validity. Your special compliance bulletin says that it does. So, are we okay if we don't give the notice?
Answer: NO! The title insurance industry (and Finance Commission staff attorneys) agree that since the law provides that failure to give the notice makes the contract unenforceable, that also means that the lien is unenforceable. Remember that the bank's lien is derived from the builder's lien. If the builder can't enforce, then logically the bank can't either. Don't take a chance...disclose.
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