Answered

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Why do buyers need title insurance on a newly built home?

A. Builders require buyers to procure title insurance.
B. It's a federal requirement in new construction transactions.
C. It's required in order to secure hazard insurance.
D. The unimproved land likely had multiple owners.

Sagot :

GinnyAnsweridn

Final answer:

Title insurance is crucial for buyers of newly built homes to protect their ownership rights.


Explanation:

Title insurance is necessary for buyers of newly built homes to protect their ownership rights. It ensures that the property title is clear of any past claims or ownership disputes that could surface in the future, providing financial protection to the buyer.

Buyers purchase title insurance to safeguard against potential legal issues related to the property's ownership history. This is crucial as unimproved land may have changed hands multiple times, leading to the possibility of undiscovered liens or competing ownership claims.

Builders might require buyers to acquire title insurance as an added layer of protection for the newly constructed property. This requirement helps mitigate risks and ensures a smooth and secure transfer of ownership.


Learn more about importance of title insurance for buyers of newly built homes here:

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