As an instructor and author on Title Insurance, I believe the title agent should be clear on their Underwriters guidelines for providing Mechanic's Lien coverage. Coverage varies significantly in different states because of each state's Mechanic's Lien laws. In some states you must file a Notice of Construction to have ANY lien rights. Others can file many months AFTER completion of the work and have a lien from the first work done.

As a good corporate citizen, and advocate for the consumer, I believe we should provide as much coverage to the consumer as possible. In many cases that means the Underwriter would allow the agent to cover any Mechanic's lien issues so long as they have what you first stated - an affidavit of no work done, and an inspection showing no visible signs of recent  improvements.

Excellent discussion!