Introduction
Buying a newly built home is exciting, but even with brand-new construction, title insurance is still essential. While the house may be new, the land it’s built on has a history, and there can be unexpected issues that arise. Here’s why title insurance is crucial for new builds and what to look out for before closing.
Why Title Insurance is Important
- Protects Against Builder Liens
Builders and subcontractors can file liens against the property if they’re not paid. If these liens aren’t resolved, they can become your responsibility once you take ownership.
- Ensures Clear Land Ownership
Even though the house is new, the land it’s on could have past disputes or ownership claims. Title insurance makes sure no one else can come forward with a claim on your property.
- Covers Errors in Public Records
Mistakes in public records, like incorrect legal descriptions or past ownership errors, can cause headaches down the road. Title insurance provides coverage for these issues, saving you from unexpected problems.
What to Look for in a Policy
- Comprehensive Coverage: Ensure your policy includes protection against liens, land disputes, and errors.
- New Construction Endorsements: Some policies offer specific endorsements for new builds, covering construction defects or boundary issues.
- Reputable Title Company: Work with a title company experienced in new construction to navigate any unique challenges.
Conclusion
Title insurance is just as important for new construction as it is for older homes. It protects your investment and ensures that no surprises pop up after closing. For professional guidance and comprehensive title services, reach out to All Seasons Title today.
