New Construction

Congratulations on your decision to build a new house! You might wonder why you need a title company or title insurance for a brand – new home that no one else hasowned. It might seem counterintuitive, but title insurance is essential, and here’s why.

During the construction of your new home, many tasks are subcontracted to specialists like roofers, painters, electricians, and plumbers.

As you make progress payments to your builder, the builder is in turn expected to pay the subcontractors. However, if the builder fails to pay, under Florida law, unpaid subcontractors can file a lien against your property. This can happen even if you’ve fully paid the builder, potentially leaving you responsible for additional payments to subcontractors, meaning you could end up paying twice for the same work.

This is where a title company steps in. By conducting title searches and ensuring that lien releases are obtained from subcontractors before you release your payments to the builder, a title company protects you from these risks. You should never have to pay twice for the same work!

If your construction is financed through a lender, they will invariably require a title company to check for liens before releasing any construction funds. If you are paying cash, it’s wise to protect yourself in the same manner by engaging a title company.

The best time to purchase title insurance is upon completion of your house and as you take possession. While your home is new, the land it sits on is not, and there may be hidden claims or errors in previous records such as unsearched back loans or mechanic’s liens.

Title issues are uncommon, but they can be extremely costly if they arise. An owner’s title policy ensures that if any problems do occur, the policy will cover legal fees, court costs, and any valid claims for back loans and liens. Once you’ve paid the initial premium, the title insurance company handles these issues at no further cost to you. This small investment safeguards you against potential title claims, allowing you to enjoy your new home with peace of mind.