Colorado Title Insurance for New Construction: Why It’s Essential for Builders and Buyers

Introduction: Protecting What You Build

Buying or building a new home in Colorado is exciting - but many people assume brand-new construction means a clean title. Unfortunately, that’s not always the case.

Even newly built homes can carry title risks tied to land ownership, unpaid contractors, or prior development activity. In this post, we’ll explain Colorado title insurance for new construction, what it covers, who needs it, and how Jerad Larkin and Chicago Title Colorado protect both builders and buyers from costly surprises.

Why New Construction Still Needs Title Insurance

It might seem like new homes are free from title issues - but title problems often originate long before construction begins.

Here’s why title insurance is crucial for new builds:

1. The land has a history. Even if the home is new, the land it’s built on may have liens, unpaid taxes, or ownership disputes.

2. Multiple contractors are involved. Unpaid subcontractors can file mechanic’s liens against the property - even after the home is sold.

3. Developments involve complex transfers.Builders, developers, and lenders often exchange ownership multiple times before the final sale.

   
   

What Title Insurance Covers for New Construction

A title insurance policy protects against financial losses caused by ownership defects, liens, or claims tied to the property’s history.

Coverage includes:

• Unpaid contractor or subcontractor liens.

• Clerical or recording errors in county documents.

• Boundary or survey disputes.

• Fraud or forgery in prior deeds.

• Unreleased mortgages or easements.

It ensures that when you buy your new home, the title is clear and legally transferable.

Types of Title Insurance for New Construction

1. Owner’s Policy – Protects the buyer’s ownership rights.

2. Lender’s Policy – Protects the lender’s financial interest.

3. Builder’s Policy (optional) – Protects developers or builders during the construction and sale phase.

   
   

When Title Insurance Is Issued for New Builds

In Colorado, title insurance is typically issued after the final certificate of occupancy or once the home is ready for closing. However, title work begins much earlier - during the land purchase or development stage - to ensure clear ownership from the start.

Why Builders Benefit Too

Builders and developers often carry their own policies to protect against:

• Liens from unpaid vendors or subs.

• Title disputes that delay sales.

• Recording errors during land transfers.

Chicago Title Colorado works closely with builders to clear title issues quickly so closings stay on schedule.

Why Choose Chicago Title Colorado

Jerad Larkin and Chicago Title Colorado specialize in new construction closings by offering:

• Builder-friendly title and escrow solutions.

• Fast turnaround times for title commitments and lien checks.

• Secure handling of large construction funds.

• Local expertise across Denver, Boulder, and the Front Range.

• National financial backing through Fidelity National Title Group.

  
  

Real-Life Examples

• A Denver homebuyer was protected when a subcontractor filed a $12,000 lien after closing - covered by title insurance.

• A Colorado Springs builder used Chicago Title’s escrow team to manage construction disbursements securely.

• A Boulder development resolved an old land easement issue before the first home closed.

  
  

Conclusion

Even brand-new homes can carry hidden title risks.

With Colorado title insurance for new construction, both buyers and builders gain peace of mind knowing ownership is clear and secure.

Jerad Larkin and Chicago Title Colorado provide expert protection, from foundation to final sale - ensuring every new home starts with a clean title.

Questions? Contact:

Questions? Contact Jerad Larkin at Chicago Title Colorado.📞 303.630.9430📧 Info@MileHighTitleGuy.comOr subscribe at MileHighTitleGuy.com for tools, resources, and exclusive real estate event invites.