Purchasing a Newly Constructed Home? Yes, You Still Need Title Insurance

You might assume that a newly constructed home is without complications, but title insurance can still be your best safeguard.

If you’re purchasing a newly constructed home rather than buying an existing home, you may be wondering if title insurance is necessary. The house is brand new, so what history could exist that would be problematic? You may be surprised to know that yes, title insurance is still a good idea, even for a newly constructed home. Many unique title-related issues can negatively impact you because other people have likely owned the land before you purchased it. Read on to discover six reasons why title insurance is a must, even for newly built homes.

Six Things to Consider About Title Insurance for New Construction

1. Complex title issues are always a possibility.

Many buyers make the mistake of assuming that the ownership of the land on which they want to construct a house is clear and undisputed. They assume that the builder or real estate agent has resolved any outstanding ownership issues. But in reality, many complicated and unforeseen issues can arise.

2. Historical ownership issues aren’t uncommon.

Even for newly-built homes, the land they are constructed on most likely had previous owners. These prior transactions can affect your ownership rights. Issues such as unresolved liens or claims from previous owners can surface, making title insurance crucial to protect against such hidden risks.

3. Errors in public records do occur.

Mistakes in the public records, such as clerical errors or incorrect information about property boundaries, are more common than you might expect. Title insurance provides protection against these errors, which could otherwise lead to legal disputes or loss of property rights.

4. It safeguards your investment.

When a new home is financed, lenders almost always require that a lender’s policy of title insurance be purchased, which protects them. This coverage does not offer protection for your investment. Only an owner’s policy helps protect your interests. It offers protection for as long as you or your heirs have an interest in the property.

5. You’re protected from exorbitant legal costs.

If a title dispute arises, the costs of legal battles can be substantial. Title insurance not only protects you from financial loss due to title defects but also covers legal fees associated with defending your ownership claim.

6. You’ll enjoy peace of mind.

Title insurance provides peace of mind by ensuring that your ownership rights are secure. It acts as a safeguard against the many complexities and hidden issues that could arise from the property’s history.

It might seem that title insurance is an unnecessary expense for a newly-constructed home, but in reality, it provides invaluable protection against a variety of potential issues related to the land’s history. By investing in title insurance, you safeguard your financial investment and gain peace of mind knowing that you’re protected against legal and historical complications that could arise.

Don’t let title issues put your real estate transaction at risk. From identifying title defects to resolving boundary disputes and other legal issues, Certified Title will protect your new home investment now and into the future. Contact us today to get started.

About Certified Title Corporation: Since 1994, attorney-owned Certified Title Corporation has been furnishing residential and commercial real estate stakeholders across the nation with robust title insurance, settlement, and escrow services. Renowned for its industry-leading reliability and exemplary level of service and quality, the Maryland-based company helps clients from all walks of life achieve their asset goals. To learn more, call (888)486-5511 or visit https://www.certifiedtitlecorp.com/.