The lender who granted a construction loan to a builder would provide the builder with the final payment upon what condition?

The final payment from the lender in a construction loan scenario is typically contingent upon the expiration of the mechanic's lien period. This period is crucial because it allows any subcontractors or suppliers who worked on the project to file a lien against the property if they have not been paid. By ensuring this period has expired before releasing the final funds, the lender is protecting their investment and ensuring that there are no outstanding claims against the property that could affect its marketability or the lender's position.

Completion of the construction project itself is necessary for the loan to be considered fully discharged, but it does not guarantee that there are no remaining financial claims against the property. A final inspection by the city is an important step, often required to ensure that the construction complies with local codes, but it does not address potential liens that could be placed by contractors and suppliers. The approval of building permits is also a prerequisite for construction but does not directly relate to the release of final payment; it is more about starting the project. Thus, the expiration of the mechanic's lien period is the correct condition for issuing the final payment to ensure that the builder has no pending financial obligations that could jeopardize the property or the lender's interests.