Title Insurance Protection - Home Buying Tips

Title Insurance Protection - Home Buying Tips

"Carl,

I have purchased a house using cash from the house I sold. (No loan needed) and have closed on it.

I had the house removed and I am now building a new house using a general contractor. Since no loan is required is a closing required again?

Leslie"

Hi Leslie,

I had my Title Insurance expert, Ken Wisniski weigh in on your question.

Here's what Ken had to say:

"Leslie, since you are now building using cash, there would not be another closing as you are basically "on your own".

You should however, make sure that you get the proper sworn statements and waivers from the general contractor and the subcontractors whether they are providing labor and/or materials, as the construction of your new home progresses.

Not an easy job for a novice!

You could however, contact the title insurance company that provided Title Insurance (and perhaps closed) on your purchase of the house and see if they can help disburse the construction funds (construction draws) to the general contractor (for a fee of course) just as they would do if there was a construction lender involved.

This is for your protection against potential liens on the property and, in the event that you decide to get a mortgage when the new house is completed, or a home equity line of credit, this information will be required by mortgage lenders."

Ken Wisniski
Owner Builder Loans