1st deed payour from title company

[Dennis Romano]

I am going to loan a devolper x amount of dollars to build a spec home. I talked to the title company and they said I will be the 1st trust deed on the property and when the property is sold I will get my money back. A couple of questions

Lets say I put 100k on the first deed right now but he claims is going to make payments before the house is sould. Lets say he pays 25k so then the pay off would be 75K how does the title company know that he only owns me $75k?

When the title company sends me the $ do they 1099 me? how do they know if there is any earned income in the amount?