When you buy something “new” you often experience the feeling of security that nothing is wrong with it. It’s fresh, it’s just off the assembly block—you can feel confident in the quality, right? Well, most of the time. But not when it comes to the big purchases. If you get a vehicle, you automatically get insurance. If you buy a nice new computer you might purchase an anti-virus software to keep it from crashing. So, what about when you buy a new house? No one’s ever lived in it, the title is fresh, clean, and certainly shouldn’t need any protection from the buying process, right? WRONG.
Before we dive into why new homes need title insurance, let’s go over what title insurance is and why every home transaction should absolutely have it.
What is title insurance and why is it so important?
At Velocity Title, a leading title insurance and closing company headquartered in Maryland, our top priority is protecting our clients from claims against their property. Buying a home is one of the largest financial investments someone can make, which is why it’s so important to protect it with title insurance!
Like other insurance products, title insurance protects against the unknown from small or catastrophic financial losses that can be raised against a property’s title. However, unlike other insurance products, it’s only a one-time purchase; there are no monthly premiums to be paid or annual renewals. Title insurance protects against a myriad of possible claims that may arise against a title, including:
- Forgery and impersonation
- Improperly recorded deeds
- Erroneous or inaccurate legal descriptions
- An unknown forced removal of a structure because your property, a) extends on another adjoining property and/or easement, b) violates an existing regulation or restriction, c) violates an existing zoning law
- Not being able to build on your land for because there is a current restriction or a zoning ordinance that was undisclosed to you
- There is an unrecorded lien by a homeowners’ association
- There are unrecorded easements
- There are building permit violations
- Property boundary line issues with neighbors
- And, much more
This brings us back to the question of why new homes need title insurance. Believe it or not, title insurance is recommended for newly constructed homes even though the home itself has no title history.
The top reasons newly constructed homes should have title insurance
- There may be many prior owners of the property your home was built on and with those prior ownerships comes the uncertainty of a clear chain of title.
- Contractors who worked on the home construction may have unfinished business dealings. This can influence the title transfer process.
- Unlike home insurance and car insurance, which focus on possible future hazards, title insurance safeguards against loss from hazards and defects already existing in the past.
Protect Your Biggest Investment—Even When its New
At Velocity Title, we want all our clients to have the peace of mind and protection against potential risks associated with the purchase of their family home. When it comes to protecting one of the biggest investments of your life, you don’t want to look the other way. Be sure to get a title insurance policy when you purchase your home. Velocity Title personnel are specially trained to help you so you can rest assured that if something arises with the title to your family’s home that you are well protected against loss.
Velocity Title Protects Your Investments and Moves You Forward
Velocity Title’s team of professionals have provided title insurance protection to over 250,000 family homes and financial investments. Our team of experts understands how to help you navigate the closing process while keeping your biggest investment protected. With a focus on the best CUSTOMER EXPERIENCE, Velocity Title incorporates leading title TECHNOLOGY and EXPERTISE into every transaction—enabling the final step in the home buying process to be EASY, EFFICIENT and INFORMATIVE. For the perfect settlement experience, and unmatched title insurance coverage, contact Velocity Title at info@velocitytitle.com or 301.805.2900.
