New Construction and Title Insurance: Safeguarding Your Investment
Building a new home? New construction offers many advantages, like the newest amenities and technology, the chance to customize your finishes to your taste and the chance to create a new community with your neighborhood. Amidst the excitement, though, you don’t want to overlook the importance of title insurance in protecting your investment. Although many people might assume title insurance is unnecessary on a new build, the fact is it provides critical coverage that safeguards your property rights and financial interests.
Title insurance protects you from potential issues related to a property’s title. Title insurance ensures that the property’s title is valid, free from undisclosed liens or encumbrances, and clear of claims that could threaten your ownership. Unlike other forms of insurance that protect your future, title insurance protects against past occurrences that could resurface and impact you negatively now.
So why is title insurance necessary for new construction? If there aren’t former owners, what issues could possibly arise on the title? Many new construction properties are free from title issues, but unfortunately that isn’t always the case. During the construction process, there are some title defects that can arise. These include contractor liens, errors in legal property descriptions or undisclosed easements on your land.
Title insurance offers extensive coverage benefits, including legal defense against covered claims or challenges. If a title issue arises, the title insurance company will handle the legal costs associated with defending your ownership rights and clearing your title, saving you from financial and legal burden.
When buying a new construction build, both the lender and buyer should purchase title insurance. A lender’s policy is almost always a requirement of using a lender; their policy protects the mortgage lender’s financial interest in the property. An owner’s policy protects the buyer’s investment, as well as their right to legally occupy the property.
If you’re building new construction for your next home, title insurance will provide peace of mind that your financial investment is protected against potential title issues. That way you can enjoy your new home without worrying about unforeseen problems with your ownership. Partnering with a trusted title company ensures a thorough title search, issuance of a comprehensive title insurance policy and confidence in your purchase. Call Clear Title to find out more about title insurance for new construction.
Pensacola: (850) 361-4029
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Pine Forest: (850) 202-8518