The construction of a new home will raise special title problems for owners and lenders. While you may think you are the first owner of the land where you are building a new home, there have likely been several owners of the vacant land previously. The prior owners of unimproved land could cause problems for new construction.
Security Title performs extensive title searches to uncover any liens and boundary issues with the property. Builders can also cause problems for new owners if they fail to pay subcontractors or suppliers, and these companies or individuals place a lien against your property. Lenders want to make sure the property has a clear title, which is why Security Title is here to help. Our job is to identify any title issues and help owners and lenders find correct title insurance that will protect buyers against legal issues.
Financing a New Home Purchase
When you are building a new property, you need to purchase lender’s title insurance as it will cover the lender’s investment in the property. It is common for buyers to pay for this insurance in the purchase of the new property compared to builders offering this as an incentive for new constriction.
Buyer’s Insurance Needs
New home construction allows a buyer to opt for enhanced owner’s title insurance. Enhanced insurance will provide additional coverage for problems with builder permit violations and zoning violations. Enhanced coverage also protects homeowners from disputes with neighbors and home owner’s associations against fencing disputes, Mechanic’s Liens, and mineral rights.
Title problems are rare for new construction, but there are some strange situations that could cause an issue. Security Title of Davis County prides themselves on working hard to protect our clients from these title issues. Our title company will handle any issues related to your property thanks to your title insurance. We want to help you with your new construction needs, call today for more information, 801-825-1313.
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I have been a Realtor for 13 years and have used many title companies throughout Northern Utah, however, Security Title is my go to, number one choice. Reliable, accurate communication is crucial in this business, and surrounding yourself with professionals, especially in the title industry, makes a big difference in real estate transactions. I consider everyone at Security Title a member of my team.