Read this. In fact, this article should be mandatory reading for every borrower and mortgage lender engaged in new construction.
You cannot believe how much trouble we in the title insurance business have getting borrowers and mortgage lenders to understand the incredible risks associated with mechanics liens.
You cannot and should not be involved in a new construction project of any kind without watching the builder like a hawk.
First of all, do NOT have materials delivered or ground broken before a Stipulation Against Liens is filed at the Prothonotary's office.
Walk the site and ask subconstractors if they are being paid. I know that sounds intrusive but some builders will take the money they receive for your house and use it to pay for work or materials being used for someone else's house. Say it ain't so! Believe it, it happens.
You should be watching every nickel and dime. New construction is very exciting but it is potentially high risk if the builder is the least bit vulnerable.