Title Insurance for New Construction: Do You Need It?

There's a certain appeal to a newly constructed home that just hits differently than buying an already built home. Especially if you're making building a custom home where you can hand-select all the features, amenities, and appliances you'd like. Although, there are a few more intricacies to new residential construction. So, as the best title company at the Lake of the Ozarks, Arrowhead Title thought it fitting to showcase a way to help protect your investment - title insurance! Read on to learn a few reasons it's beneficial to purchase title insurance on your new construction!

Land Ownership

When purchasing land to build on, it's important to ensure that the parcels of land are correctly divided and recorded. While your new home will not have had any owners before you, the same cannot be said about the land you're building on. There could be a complicated history of ownership of the land and obtaining title insurance is one way you can protect yourself from any threats to your property ownership.

Contractor Liens

Liens are the right to keep possession of property belonging to another person until the debt is paid or discharged. These liens can occur in instances where a builder that outsources work to other companies doesn't pay one or more of their contractors that completed a project on the home. If you buy without title insurance, you could end up liable for the uncollected debt! When you buy title insurance, you'll be able to see any liens on the property with a title report and be covered from any legal issues that could threaten ownership after the purchase.

Recording/Transfer Errors

Clerical errors happen and it's hard to control when or where they will occur. This could be a mistake by the registers or recorders that results in the misspelling of your name, square footage of the home, or even missed transfers of ownership entirely. When you obtain title insurance, you're buying coverage to protect yourself from these errors. 

As you can see, purchasing title insurance for your new construction is a smart move to avoid any unforeseen consequences or debts. After all, you're making a large investment in this home and you will thank yourself to do everything you can to see that it is done properly. As the best title agency at the Lake of the Ozarks, we use our industry and area expertise to provide timely and accurate title services at the Lake of the Ozarks. So, if you are building a new home at the Lake and would like to ensure you're covered, purchasing title insurance is a great solution. 

The Lake of the Ozarks' Most Trusted Title Company

Where Accuracy Matters!


750 Bagnell Dam Blvd Suite B
Lake Ozark, MO 65049

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