Construction Draws

[Traume]

Is it standard practice for the lender of a construction loan to give out the draws straight to the contractor?

I, the home owner, have run into problems with accountability of the lender and contractor with these matters.

Any laws (in Tennessee) to protect a home buyer?

Thanks.

[RealEstatePromos]

Yes they will do that some times. Espcecially with an inexperienced developer. What they do is trade lien releases for checks. The bank sometimes with do check with the developers and the contractors names on it. That way the developer has to sign off on them, but the bank is assured the right people are getting the money.