Title Insurance On New Construction

[Russell Brazil]

Im curious as to other's thoughts on whether I should purchase title insurance on a new construction property. @Rich Baer what do you think?  

[Chris Mason]

New construction carries many of the same risks as older construction.

Who is to say that the former landowner didn't have a signed and notarized agreement with Billy Bob's grandpa saying that Billy Bob and all of his descendants have permanent irrevocable cow grazing rights over the land that all these houses are now on? Maybe this deed restriction was overlooked because it was never recorded at the county, but that agreement was 100% real, notarized, there is zero doubt as to its authenticity, etc.

Are Billy Bob and the herd of cows he shows up to your front yard with, while waving a piece of paper, clearly legal trolls? Yup, I think so.

Would the homeowner(s) and developer win in court after a bunch of legal fees? Yup, perhaps they would.

Would it be easier to simply have title insured so you can file it away in the "not my problem" basket? I'd say so.

(Yes, I picked a funny example. A less funny one might be mineral rights. Or a long-forgotten easement from the 19th century when the West was being settled that 1 out of 48 plots of land must be reserved for public schools.)