When buying a newly constructed house, there are a lot of interesting factors to take into account, such as the layout, the finishes, and the excitement of being the first to live on the land. However, title insurance is a crucial step in the house-buying process that shouldn't be missed despite all the enthusiasm. 

"But why should I get title insurance if there are no previous owners of the house?"

The short answer is this: without title insurance, you might be shocked at the traps you can still end up in.

We'll dive deeper into this in a bit so be sure to sit down, relax, and continue reading.

The Dangers of Not Getting Title Insurance

When purchasing a newly built house, buyers and lenders may be taking major risks if title insurance is not obtained. The biggest risk is the mechanic liens. Contractors, subcontractors, or suppliers who may not have received payment for their services on the property may have put these. 

Even if they were not aware of the liens, the new owners might be liable for their payment in the absence of title insurance. 

Legal disputes and monetary losses can also result from other title-related problems such as unreported easements, incorrect land subdivision, zoning violations, or forgeries in the chain of title. 

How Your New Construction Property Is Protected by Title Insurance

So, how may these problems be avoided? Title insurance can help in this situation! Title insurance protects against any claims and disputes about ownership of the property. If problems with the property's title emerge, it offers both legal and financial protection.

Title Insurance Types for New Construction Projects

Owner's title insurance and lender's title insurance are two essential forms of title insurance for newly constructed residences. 

• By ensuring that their lien position is safeguarded, the lender's title insurance protects the lender's investment in the property. 
• The owner's title insurance guards the buyer's interest in the property by covering any title flaws, boundary disputes, and other title-related issues up to the amount of coverage chosen.

How Title Insurance Supports Newly Constructed Homes

Title insurance companies are committed to defending the rights of Hoosiers engaged in new construction closings. Depending on the company, they might protect the properties through these strategies:

• Performing a thorough title search to find any potential ownership problems. This entails confirming the chain of title, looking for any liens that may be outstanding, and ensuring that there are no unreported encumbrances on the property. 
• Providing comprehensive policies that offer peace of mind and financial security for both lenders' and owners' title insurance. They'll take care of the legal and financial ramifications of any title dispute or issue, giving our clients the assistance and knowledge they need. 

Take Off with a Positive Note with IndyLegal

Acquiring a freshly built residence is a thrilling achievement, but title insurance should not be undervalued. For new developments, title insurance offers lenders and homeowners financial and legal security as well as protection from any hazards.

When it comes to obtaining title insurance, IndyLegal is the best option because of our knowledge and commitment to meeting the needs of buyers of newly constructed homes.

Don't put your money at risk. For all of your new construction title insurance needs, get in touch with us today!