Question: Do I need title insurance, when buying a new home in Utah?
Answer: Construction of a new home raises special title problems for the lender and owner. You may think you are the first owner when constructing a home on a purchased lot.
However, there were most likely many prior owners of the unimproved land. A title search will uncover any existing liens and a survey will determine the boundaries of the property being purchased.
In addition, builders occasionally fail to pay subcontractors and suppliers. This could result in the subcontractor or supplier placing a lien on your property.
Again, lenders want to make sure the property has clear title. Purchasing owner’s title insurance will protect you against these potential problems and pay for any legal fees involved in defending a claim.