Do I need title insurance on a brand-new home?

Yes. Your lender requires a loan policy, and an owner's policy protects you against title defects in the development chain — unreleased developer mortgages, plat errors, contractor liens, and boundary issues. New does not mean risk-free.

What is a builder's indemnity agreement?

A builder's indemnity is a contract where the builder agrees to defend and hold harmless the title company and buyer against construction lien claims filed after closing. Title underwriters often accept it in lieu of individual lien waivers from every subcontractor on production builds.

Who pays for the owner's policy on new construction?

It varies. Some builders include title insurance in the purchase price or pay for the owner's policy as a sales incentive. In other cases, the buyer pays per local custom. Check your purchase agreement and ask your closer for a line-item estimate.

What if a subcontractor liens the property after I close?

If the builder provided an indemnity and the lien qualifies as a covered risk under your policy, the title insurer may defend and indemnify you. If the builder is insolvent and no indemnity was obtained, you may need to pursue the builder directly. This is why lien waivers and indemnities at closing are critical.

Is a survey required for new construction?

Not always, but it is strongly recommended. Many lenders require a survey or survey endorsement. Even when not required, a survey confirms the house is on the correct lot and within setbacks — cheap insurance against boundary disputes.

Can TrustPro Title close new construction in my state?

TrustPro Title closes new construction transactions in 49 states (excluding Hawaii and Puerto Rico). Development title complexity varies by state — contact our team with your builder and lot details for a timeline estimate.

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August 6, 2026 · TrustPro Admin

Title Insurance for New Construction: What Builders and Buyers Should Know

New construction closings involve builder deeds, lot splits, construction liens, and interim lender policies. Here is how title insurance works from groundbreak to final policy.

New construction transactions present title insurance challenges that differ significantly from resale purchases. The property may never have been individually deeded before. The builder holds title to a larger parcel and conveys individual lots through a plat subdivision or lot split. Construction loans, mechanic's liens from subcontractors, and developer financing create layered encumbrances that must be cleared before the buyer receives a clean owner's policy.

Buyers of new construction often assume that because the home is brand new, the title must be clean. In reality, new construction files are among the most complex residential transactions title companies handle. The chain of title may run through a developer entity, a builder LLC, and a construction lender — each with its own mortgages, releases, and lien waivers that must be documented before closing.

TrustPro Title & Escrow, Inc. coordinates new construction closings nationwide from Clearwater, Florida, working with production builders, custom home contractors, and individual lot buyers. We deliver commitments on 24–48 hour timelines where the development title work is complete, charge flat escrow fees, and serve 49 states (excluding Hawaii and Puerto Rico). Contact our construction closing team or review our full service offerings.