As you know, title insurance protects your home ownership against claims made by those who have an interest in your property. The title search we conduct will unearth most potential problems with your title, but sometimes because of errors or unknown information, title problems can remain hidden. This is why we always recommend you buy title insurance.
But if you’re building a brand-new home, buying title insurance might seem silly. After all, no one has ever owned the home before you! But there are two good reasons why you should buy title insurance when you buy new construction:
The land: You may be the first owner of your home, but the land has likely had several owners before you. If someone makes a claim against your ownership of the land on which your home sits, title insurance will protect you.
Mechanic’s liens: If your homebuilder doesn’t pay its contractors, mechanic’s liens can be placed on your home. Title insurance will protect you if this happens.