The real estate market has been a perfect storm of sorts in 2020. Record low interest rates have people buying or refinancing at a record pace. This is coupled with large population movements due to the pandemic as people flock from urban centers for either a change in lifestyle or as their professional life goes more virtual. The greater Bucks County area has become a desirable area as a result.
The issue becomes a matter of supply – there are not enough existing homes to satisfy demand so many have turned to new construction.
A question that is often raised is whether or not title insurance is required on new construction. The short answer is: Yes.
The Dwelling is New but the Land is Not
Whether the dwelling is being built on a lot or is part of a bigger development project, the land that it is being built on has a history of being bought and sold over time. Conflicts or claims of ownership are just as much a possibility as it would be if there was already a dwelling on site.
Developer and Builder Issues
Development communities involve a lot of parties to prepare the site and complete development. It takes excavation companies to prepare the site, contractors to install the various utilities such as power, sewer, etc and finally the homebuilders themselves. With all the hands involved in the overall development project, it’s possible for legal or financial issues to arise. The result could mean liens being placed on the developer. Title insurance protects homebuyers against any subsequent issues between the developer and the various parties that were involved in the development of the community.
Administrative Issues Down the Road
An often overseen fact is that the value of your title insurance lasts for as long as you own your property. This will come in handy should there ever be an issue such as the ones already mentioned above but also against any recording issues with the deed.
Title Insurance Offers Piece of Mind
Whether you are refinancing or buying a property, title insurance offers piece of mind. Real estate is almost always one of the largest investments anyone can make and nothing should be left to chance.
Principle Abstract and Settlement Service takes the role we play in your investment with the upmost care, ensuring that there are no issues with the property involved. And as an independent provider, we work to ensure that the interests of the buyer is at the forefront.
Interested in buying a plot to build your home on or purchase a new construction home? Give our office a call to speak with one of our representatives.