Why Title Insurance is an Important Purchase for Your New Home


If you are in the process of finalizing the purchase of your new home’s lot and are preparing to build a new home at the Lake of the Ozarks, you may have questions as to whether purchasing title insurance is necessary for new construction.  Some buyers of newly built homes or buyers who plan to build on newly purchased property assume that purchasing title insurance for a new home is not necessary.  The thought process is that since no one has ever owned the home or property, there shouldn’t be any issues.  However, this is not necessarily the case.  Title insurance is critically important to buyers of both new and resale homes.  At Arrowhead Title, your title company at the Lake of the Ozarks, we have come up with some very important reasons that you should purchase title insurance for your newly constructed home.

Potential Title Issues:

Land Ownership & Rights

Even though you are building a brand-new home, the land that you are purchasing has been around for a long time.  While your house is new, the land it’s built on is not, so it’s possible to have a third party make a claim on the property. The land may have been part of a large parcel that has undiscovered claims.  If you are building in a new subdivision, you need to make sure the land was subdivided properly and that your home is on the correctly identified lot.  A survey of the land will help you make sure that there is no question of property ownership in the future.

Liens on the Property

In some cases, a developer may have failed to pay mechanic’s liens – these include bills from providers like roofers, carpenters, plumbers, subcontractors, and other suppliers.  These mechanic’s liens attach to the real estate, so if the builder does not pay them (or if they were to go out of business at some point), the subcontractor or supplier can file a lien on your property.  Some other liens that may be placed, even on new construction, may be liens for unpaid mortgages, taxes, and/or HOA fees. A full title search of the property will uncover any existing liens on your property.

Errors in Public Records

Title insurance covers clerical errors that have been made regarding your property.  Clerical errors are more common than one would like to believe.  A “small” clerical error, such as a name being spelled incorrectly, or the square footage of the home being documented wrong, can negatively impact the home-buying process and may result in a significant financial loss for the buyer.  Title insurance also covers mistakes made in the recorders and registrars of deeds’ offices. So, if a lien is properly filed but it cannot be found in a search due to a courthouse error, then the lien holder still can assert their rights, and the homeowner is left to sue the county.

Your home may be the most important purchase you ever make, so be sure to carefully consider all these factors when making the decision to purchase title insurance for your new construction.  With title insurance, you can relax and enjoy the peace of mind that you are the legal, rightful owner of your newly constructed home and the property it sits on.  Your trusted title agents at Arrowhead Title, Inc. will help protect your investment, should the need arise. If you're in the process of buying a home at the Lake of the Ozarks, we hope you will keep us in mind as your go-to title insurance company at the Lake. We treat all our clients with the utmost respect, integrity, and - above all - accuracy.

The Lake of the Ozarks' Most Trusted Title Company
Where Accuracy Matters


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750 Bagnell Dam Blvd Suite B
Lake Ozark, MO 65049

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