There are many exciting aspects to consider when it comes to purchasing a new construction home, including the layout, finishes, and the joy of being the first to live on the property. However, even with all the excitement, it is crucial to not overlook an essential aspect of the home-buying process: title insurance. But why get title insurance when there’s been no previous owners? You may be surprised by the pitfalls you can still find yourself in without it. Here’s why title insurance is a must-have for buyers of new construction homes and how you can keep your investment protected


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Risks of Not Having Title Insurance

Not having title insurance on a new construction home can expose buyers and lenders to significant risks. One of the most significant risks is mechanic liens. These can be placed by contractors, subcontractors, or suppliers who may not have been paid for their work on the property. 

Without title insurance, the new homeowner may be responsible for paying these liens, even if they were unaware of them. 

Additionally, other title-related issues, such as undisclosed easements, improper land subdivision and zoning issues, or forgery in the chain of title, can lead to legal battles and financial loss. 


How Title Insurance Protects Your New Construction Property

So, how can we avoid these issues? This is where title insurance comes to the rescue! Title insurance safeguards against any potential ownership disputes and claims on the property. It provides financial coverage and legal protection if issues arise related to the property’s title. 


Types of Title Insurance on New Construction Builds

When it comes to new construction homes, two types of title insurance are crucial: owner’s title insurance and lender’s title insurance. 

  • Lender’s title insurance shields the lender’s investment in the property by making sure their lien position is protected. 
  • Owner’s title insurance protects the buyer’s interest in the property, providing coverage for potential title defects, boundary disputes, and other title-related concerns up to the amount of coverage purchased. 


New construction house rooftop in the process of being built.

Title insurance is important for every home, even if it is a new construction build.


How Metropolitan Title Supports New Construction Title Needs

At Metropolitan Title Company, we understand the complexities of new construction title insurance and are dedicated to protecting the interests of Hoosiers involved in new construction closings. With our extensive knowledge and expertise, we protect your investment through the following: 

First, we conduct a thorough title search to identify any issues that may arise with the property’s ownership. This includes verifying the chain of title, checking for outstanding liens, and making sure the property is free from any undisclosed encumbrances. 

Second, we provide comprehensive owner’s title insurance and lender’s title insurance policies that offer financial protection and peace of mind. In the event of a title dispute or defect, we’ll handle the legal and financial aspects, providing our clients with the necessary support and expertise. 


Start on the Right Foot with Metropolitan Title

Purchasing a newly constructed home is an exciting milestone, but it is crucial not to overlook the importance of title insurance. Title insurance on new construction protects against potential risks and provides financial and legal protection for homeowners and lenders. Metropolitan Title Company, with our expertise and dedication to serving the needs of new construction homebuyers, is the ideal choice for securing title insurance. Don’t jeopardize your investment. Contact us today and choose Metropolitan Title for your new construction title insurance needs.


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