new construction title insurance
Many new construction home buyers make the mistake of assuming that the title to the property they want to build a home on is free of any disputes, liens or claims. They often think that the prior owner, the developer, or the builder, has taken necessary steps to resolve any outstanding clouds on the title. That is not always the case. There are several reasons why new construction homes in Florida should have a title insurance policy in place.
Your mortgage lender will require title insurance.
Title insurance is designed to protect the lender’s interest in their collateral—your property—even for new home construction. If you are financing any part of the purchase or the new construction, your lender will require you to have a lender’s title insurance policy as a condition to granting the mortgage loan. A lender’s title policy only protects the lender—it does not protect the owner.
Owners title insurance protects your ownership on new construction homes.
A title search is necessary even when you buy property from a real estate developer that you presume has already performed a thorough title search. Despite even the most exhaustive title search, title defects and issues can arise after closing that can cost you significant amounts of money and put your ownership interests in question.
A title insurance policy on new construction will cover legal expenses.
When you buy owner’s title insurance, you will pay a premium. The cost of your premium is significantly less than what you could spend in legal fees to defend your title interest. In some cases, there is the possibility you could lose your property and find yourself without resources to replace it.
For more information on title insurance policies on new construction homes in Florida, contact Haven Title.