I’M BUYING A NEWLY BUILT HOME, DO I NEED TITLE INSURANCE?
With the construction ofa new home special title problems for the lender and owner could occur. You are not the first owner of the property. There were probably many priorowners of the unimproved land. You don’t want problems or liabilities from previous owners to interfere with your rights to your property.
A home is the largest single asset most people will acquire during their lifetime, and a mortgage is often the single largestdebt obligation many will ever incur. With such a huge investment at stake it makes sense to obtain title insurance that will insure against outstanding liens and encumbrances. For example, the builder may not have paid a subcontractor or supplier. This could result in the or supplier placing a lien on your property. Your lender will want to make sure that the title to the property they are financing is clear, and that their mortgage is in the proper priority.
By purchasing title insurance, you will be protected against covered claims for as long as you own the property.
