Do I need Owner’s title insurance in a new construction home?

I’m buying a new home. The seller built the house for me over an existing lot of his property. Do I need to buy a regular owner’s title insurance? or might I save some money buying it only for the land?. Since the house is a new construction it should not be any liens. is this a right assumption? The house is located in TX.
Also if I need to buy owner’s title insurance does it has to be from the same company providing the lender’s title insurance.

5 Responses to “Do I need Owner’s title insurance in a new construction home?”

  1. Realtor Jul Says:

    Abosultely, the following web link will provide you with some information about a local builder and the situation that the homebuyers who didn’t buy title insurance found themselves in. Basically many lost their homes.

    Start with the last article dated April 25, it should give you the basic information.

    http://www.kypost.com/news/erpenbeck.html

  2. txrealestateagent Says:

    The title company is going to research the land and the structures on the land. I’m pretty sure you have to have both, although I have never asked the specific question.

    You want to have them insure both. I was involved in a situation where the builder had sub-contracted some work on a new build. The builder forgot to pay the sub-contractor. When I attempted to sell the house, the mechanics lien from the sub-contractor appeared.

    If the title company had not discovered this in the title work on the house, there was potential for the buyer of the house to end up having a lien on his property for this work. Of course, this is the purpose of title insurance. The title company would have had to paid the lien off based on the terms of the policy.

    You do not have to get your owners policy from the same title company as the lenders policy. It really doesn’t make sense not too. Rates for title insurance are controlled by the state, so any company you get it from will charge you the same amount.

  3. Kayla Hernandez Says:

    After the Typhoon Katrina incident, we always make sure that our home is always insured that is why we always get premium home insurance. ;’~

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