Getting an owner's title insurance policy is important for all homebuyers, even if the residence is newly constructed. In fact, it is especially important for new-home buyers because they have risks not associated with previously owned properties.
Because they will be the original owners, it is important that the buyers ensure that a survey was conducted and is insured as part of their owner's title insurance policy. Doing so will eliminate challenges to their lot boundaries in the future.
Moreover, the owner's policy will protect the buyer in the event that the builder failed to pay all of the contractors and suppliers - who could file mechanics' liens against the new home in an attempt to get compensation.
"Title Insurance on a Brand-New House," Los Angeles Times Online (10/12/03); Bruss, Robert J.
Moreover, the owner's policy will protect the buyer in the event that the builder failed to pay all of the contractors and suppliers - who could file mechanics' liens against the new home in an attempt to get compensation.
"Title Insurance on a Brand-New House," Los Angeles Times Online (10/12/03); Bruss, Robert J.