Buying a brand new home? Don’t skip title insurance! Title insurance protects your investment from day one.
Title insurance is just as important for new construction properties as it is for existing homes, and in some ways, it is even more important. Here are some of the reasons why:
Land-related title issues: Even though the house is brand new, the land it sits on has a history that may include title defects. These defects can include things like unpaid taxes, liens, or errors in public records. A title search will uncover any existing liens, and a survey can determine the boundaries of the property.
Contractor liens: In new construction, there is a risk that contractors or subcontractors may not be paid in full, which could result in a lien being placed on the property. These liens can be difficult to discover and can cause significant problems for the homeowner.
Survey errors: Survey errors can occur in new construction, which can lead to boundary disputes or encroachments. These issues can be costly to resolve.
Changes in plans: Sometimes, changes are made to the construction plans after the title search is completed. These changes can create new title issues that were not previously identified.
Title insurance can protect you from financial loss due to these and other title problems. It can also cover the cost of defending your title in court.
In addition, there are a few other things to keep in mind about title insurance for new construction:
Lender’s title insurance: If you are financing your new home, your lender will require you to purchase lender’s title insurance. This insurance protects the lender’s financial interest in the property.
Owner’s title insurance: You should also purchase owner’s title insurance to protect your own financial interest in the property. This type of insurance is optional, but it is highly recommended.
Enhanced owner’s title insurance: Consider purchasing an enhanced owner’s title insurance policy. This type of policy provides additional coverage for certain risks, such as post-policy title issues.
Overall, title insurance is an important investment for anyone purchasing a new construction property. It can protect you from financial loss and give you peace of mind knowing that your property rights are secure.
At Tier 1, we provide competitive title insurance in addition to our other title services. So make the RIGHT choice. Choose Tier 1 Title.
