Title Insurance for New Construction: What Every Buyer Needs to Know

Why Title Insurance Matters for New Builds

Many buyers assume that because their home is brand new, there can't be title issues. This is a common misconception. New construction properties can have title complications including:

• Construction liens — Subcontractors or suppliers who weren't paid by the builder can file liens against your property
• Easement issues — Utility easements, drainage easements, or access rights that affect your lot
• Survey discrepancies — Boundary issues between your lot and neighboring properties
• Developer obligations — HOA declarations, deed restrictions, or community development district (CDD) assessments

What Title Insurance Covers

Title insurance protects you against financial loss from defects in the title to your property. For new construction, this includes protection against:

• Undisclosed liens from the construction process
• Errors in the legal description of your property
• Forgery or fraud in prior conveyances of the land
• Undisclosed restrictions that limit use of the property

The New Construction Closing Process

Closing on a new build typically involves:

1. Contract execution — Signing the builder's purchase agreement
2. Construction period — 4-8 months for most homes
3. Pre-closing walkthrough — Inspecting the completed home
4. Title search and clearance — Ensuring clean title
5. Closing day — Signing documents and receiving keys

CDD Assessments

Many new construction communities in Central Florida are within Community Development Districts (CDDs). These are special taxing districts that fund infrastructure like roads, utilities, and amenities. CDD assessments appear on your tax bill and typically range from $1,500-$4,000 annually. Your title company will disclose all CDD obligations before closing.

Choosing a Title Company

For new construction closings, look for a title company that:

• Has experience with builder contracts
• Understands construction lien law
• Can coordinate with the builder's closing department
• Offers competitive rates on title insurance
• Provides clear communication throughout the process

Get Connected

We partner with experienced title professionals who specialize in new construction closings across Central Florida. Request a title services referral today.