Why do I need title insurance for a newly built home?

Construction of a new home has the potential exposure to unique title pitfalls that may impact the lender and owner.

You may think you are the first property owner when you are constructing or buying a newly built home. However, there were most likely many prior owners of the unimproved land. A title search will uncover any existing liens and a survey will determine the boundaries of the property you’re purchasing. 

In addition, a builder may have failed to pay subcontractors and suppliers. This could result in the subcontractor or supplier placing a lien on your property. 

Since your lender wants to be sure the property has clear title, they will require that a Loan Policy of Title Insurance be purchased. But a Loan Policy only protects the lender. By purchasing an Owner's Policy of Title Insurance, you will be protected from covered threats to your title and ownership that went undiscovered at the time of closing. 

Best of all, your Owner’s Policy provides this coverage for as long as you own your home!

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