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Do you need a title search for a newly constructed home?

On Behalf of | Feb 15, 2024 | Construction

When purchasing a newly constructed home, the excitement of choosing floor plans, selecting finishes and imagining your life in a brand-new space can be overwhelming.

However, despite all the excitement, you won’t want to overlook a fundamental step in the home-buying process – a title search.

Why is a title search necessary for a new home?

Many homebuyers assume that a newly constructed home comes with a clean slate regarding title issues. While it’s true that the home itself is new, the land it sits on and the chain of ownership leading up to the construction could still present challenges.

Here are several reasons why a title search is still important when you’re buying a brand-new home:

  • Errors in records: The land on which the new home is built may have a complicated ownership history. A title search ensures that the developer has a clear title to the land and the legal right to sell it to you.
  • Construction liens: Contractors and subcontractors involved in the construction process may file liens against the property if they are not paid. A title search helps uncover any potential liens before they become your issue.
  • Unknown encumbrances: Legal disputes, easements and restrictions on the land use may not be apparent without a thorough title search. Discovering these issues early in the process allows you to make an informed decision about whether to proceed with the purchase.

Because a home purchase is probably the biggest single financial transaction most people ever make, it’s always best to proceed with as much information as possible before you make a final deal. Seeking legal guidance can help you avoid unfortunate mistakes and protect your interests more generally.