When buying a home that has just been built, you may find it curious that you need title insurance. This kind of insurance is centered around protection from debts, obligations, or errors to the title that the previous owner may have incurred—but in this case, you no one has owned the home yet aside from you!
This is nonetheless the case because title insurance can also protect you from other losses related to your developer. Additionally, someone used to own the land your home is now on, so that’s a concern as well. If a newly constructed home has left you scratching your head and wondering how title insurance fits into that, we’ve got the rundown.
Previous Land Owner
If whoever previously owned the land your home is built on had a lien against that land, or were involved in some kind of dispute about the land, that could present issues. It may have been previously undeveloped land, but that doesn’t mean whoever owned it didn’t fail to pay taxes, take a lien out, or even passed away, leaving a dispute regarding the land behind. Securing title insurance clears up complications like these and helps you resolve them quickly.
Your developer could also get into a dispute that causes a lien on the property. Imagine they get into issues with a contractor by failing to pay them. Even responsible developers can create these kinds of issues, and a lien can be placed if a contractor isn’t paid. Sometimes you can discover potential liens, but at other times, a clerk makes an error, and a lien isn’t properly disclosed. The same can be said of other complications. Title insurance is a fantastic way to protect yourself from such issues.
We understand that you want to trust that your developer did what they were supposed to do, including buying land that doesn’t have any liens on it and paying contractors for their work. Title insurance is a crucial element in creating trust within the real estate industry. This helps everyone know that the work done is protected and that everyone is safe, which helps develop a great sense of trust.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, and LinkedIn.