Local Builder in Trouble ~ Title Company Involvement?

I'm sure most of you are aware of or have at least heard that something is going on with Bill Mace and Mace Construction Company here in Clarksville, TN.  As a result, I am incorporating the following in all of my future purchase and sale agreements for new construction to protect my clients.  "Seller to comply with title insurance underwriter requirements as to the filing of the Notice of Completion."  I am adding the following to ALL of the purchase and sale agreements "Seller to provide Enhanced Title Policy."  No one really knows what is going on with Mace Construction, alot of speculation and gossip that the courts will have to sort through.  I am going to protect my clients on any purchase!

Bill Mace, owner of Bill's Construction, and the manager of the Clarksville branch of Title Connection, Yvette Reimold, are accused of not satisfying mortgages taken out by Mace to pay for the development of the properties before selling them to buyers.

Court filings allege Reimold funneled the money into several accounts in the construction company's name.  Suing Mace and Reimold are Stewart Title Guaranty Company and Title Connection, LLC. Stewart Title is a title insurance underwriter and Title Connection is a "full-service title company," court records state.

According to the petition, filed July 2 in Chancery Court, Mace borrowed money from several federally insured banks to buy lots for real estate development and home construction.

Instead of paying off the existing mortgages used to develop the property, court filings allege that Reimold funneled the money into the company's account.

The Leaf-Chronicle confirmed Wednesday that Mace filed for Chapter 11 bankruptcy in U.S. District Court in Nashville on July 17.

He is due to appear before creditors and a U.S. trustee in Nashville Aug. 22. Chancery Court records allege the nonpayment took place in at least 12 instances, and was valued at about $1,302,223.

Stewart Title and Title Connection are seeking a restraining order or temporary injunction that will appoint a receiver, call for a judgment for damages and "such other and further relief as the court deems just and equitable."

Court filings include an affidavit signed by private investigator Lynn Wilburn, who supported some of the allegations made by Stewart Title.

Information is compliments of the Leaf Chronicle.