Colorado Title Insurance for New Construction: Protecting Your Home Before the First Nail Is Hammered

Jerad Larkin
4 hours ago
3 min read

Introduction: New Builds Come With Old Risks

Buying or building a new construction home in Colorado is an exciting milestone. You get modern finishes, energy-efficient design, and the satisfaction of being the first to live in your dream home. But even when a home is brand new, the land it’s built on isn’t - and that’s where problems can begin. Colorado title insurance for new construction protects buyers, builders, and lenders from hidden risks tied to the property’s ownership history, unpaid contractors, or recording errors during development.

Building or buying a new home in Colorado? Jerad Larkin and Chicago Title Colorado explain how title insurance protects your new construction from liens, ownership disputes, and title defects.

Why You Need Title Insurance for New Construction

Even brand-new homes can carry title issues. Here’s why title insurance is a must:

Land Has History – The property may have changed hands, gone through foreclosures, or been subdivided incorrectly.
Construction Liens Are Common – Builders, subcontractors, or suppliers can file mechanic’s liens if they aren’t paid in full.
Boundary and Survey Errors – New developments often involve multiple parcels, easements, and recorded plats that need to be accurate.
Clerical or Recording Errors – A simple filing mistake can cloud ownership or delay closing.
Protection for the Future – Title insurance covers you for as long as you own the property.

Without title insurance, any unresolved issue could become your problem - even years after you’ve moved in.

Common Title Issues in Colorado New Construction

Unreleased construction or mechanics’ liens.
Ownership disputes from prior landowners.
Easement or right-of-way conflicts.
Developer or contractor recording errors.
Survey discrepancies or boundary misalignments.
HOA or municipal assessment errors.

Every one of these risks can delay or jeopardize your new home purchase - unless they’re resolved through title insurance.

What Title Insurance Covers for New Builds

A Colorado title insurance policy protects your ownership rights by covering:

Ownership defects or undisclosed claims.
Fraud, forgery, or falsified deeds.
Clerical or recording mistakes.
Mechanic’s and contractor liens.
Easement or access disputes.
Legal defense costs for covered claims.

This ensures that when you take ownership of your brand-new home, the title is clear and protected.

The Title Process for New Construction

1. Title Search and Review

Chicago Title researches the land’s ownership history, subdivision filings, and developer transfers.

2. Defect Resolution

Any existing liens, encumbrances, or legal errors are cleared before construction or closing.

3. Escrow Management

Funds are securely handled during each construction phase to protect both builder and buyer.

4. Policy Issuance

Owner’s and Lender’s Policies are issued at closing to protect the buyer and lender.

Why Choose Chicago Title Colorado

Jerad Larkin and Chicago Title Colorado specialize in working with builders, developers, and new construction buyers across Denver, Boulder, and the Front Range.

They provide:

Fast turnaround on builder and developer title work.
Dedicated escrow coordination during construction draws.
Accurate handling of multi-lot and subdivision filings.
Protection backed by Fidelity National Title Group.
Personalized guidance for first-time new construction buyers.

Whether you’re buying from a major builder or constructing a custom home, Chicago Title Colorado ensures a smooth, secure process from start to finish.

Real-Life Examples

A Castle Rock buyer avoided a $12,000 mechanics’ lien after Chicago Title verified all builder invoices before closing.
A Boulder homeowner discovered an unrecorded utility easement that was resolved prior to construction.
A Denver developer cleared a multi-parcel subdivision issue that could have delayed 10 new home sales.

How Much Does Title Insurance Cost?

Title insurance premiums in Colorado are regulated by the Division of Insurance, so pricing is fair and consistent statewide. Expect to pay between $900–$2,000, depending on the property’s value and loan amount. It’s a one-time payment that protects your ownership rights for life.

Conclusion

Your dream home deserves more than a beautiful foundation - it deserves a secure one. Colorado title insurance for new construction protects your ownership, your equity, and your peace of mind, ensuring that your new home is free from legal or financial complications tied to the land or builder. With Jerad Larkin and Chicago Title Colorado, you can focus on moving into your new home - while they handle the rest.