Colorado Title Insurance for New Home Construction: Protecting Builders and Buyers From Start to Finish

Jerad Larkin
12 minutes ago
3 min read

Introduction: From Blueprints to Keys - Protecting Every Phase

Building a new home in Colorado is an exciting process - but it’s also one of the most complex transactions in real estate. Between contractors, lenders, developers, and homeowners, dozens of moving parts must align before closing.

Even with brand-new construction, hidden ownership or lien issues can surface. That’s why Colorado title insurance for new home construction is essential for protecting everyone involved - from the first shovel to the final signature.

Building a new home in Colorado? Jerad Larkin and Chicago Title Colorado explain how title insurance protects builders and buyers from liens, ownership errors, and legal risks.

In this post, we’ll break down how title insurance safeguards both builders and buyers during construction, and how Jerad Larkin and Chicago Title Colorado make sure your dream home starts with a solid foundation.

Why Title Insurance Matters for New Construction

Many assume new homes are “clean” from a title perspective - but new doesn’t always mean clear.

Here’s why title insurance is crucial:

Covers Construction Liens – Protects against unpaid contractor or supplier claims.
Confirms Legal Ownership – Ensures the land and new improvements are properly vested in your name.
Protects Against Hidden Defects – Covers clerical errors, recording mistakes, or prior liens.
Verifies Developer Transfers – Confirms builder and developer documentation is accurate.
Safeguards Financing – Required by lenders before issuing construction loans or final mortgages.

Common Title Issues in New Construction

Unpaid subcontractors filing mechanic’s liens.
Incorrect legal descriptions on new parcels.
Overlapping boundaries after lot splits.
Easements or utility lines not properly recorded.
Prior ownership liens not cleared during land development.

Even minor documentation errors can cause major delays in funding, permits, or closing.

How Title Insurance Works During the Build

1. Land Purchase and Pre-Construction Phase

Before construction begins, Chicago Title verifies clear ownership and issues a title commitment to confirm the property is free of defects.

2. Construction Phase (Draw Coverage)

As work progresses, title insurance ensures each construction draw is released only after confirming no new liens or disputes.

3. Final Closing and Policy Issuance

Once construction is complete, an Owner’s Policy and Lender’s Policy are issued to cover both parties against future claims.

What Title Insurance Covers for New Builds

Your Colorado title insurance policy covers:

Unpaid or undisclosed liens.
Fraud, forgery, or recording errors.
Ownership defects or missing heirs.
Easement and access disputes.
Boundary and survey issues.
Post-construction lien filings.

This one-time policy protects your ownership for as long as you hold the property.

Why Choose Chicago Title Colorado

Jerad Larkin and Chicago Title Colorado work closely with builders, lenders, and homeowners across the Front Range to ensure smooth, timely closings for new construction.

They provide:

Fast and accurate title commitments for land purchases.
Lien monitoring and draw disbursement services.
Escrow management to protect funds.
Coordination with lenders and HOAs.
Local expertise in zoning and subdivision regulations.

Real-Life Examples

A Denver homebuyer avoided a $14,000 contractor lien thanks to Chicago Title’s proactive lien check.
A Boulder builder completed a 12-home subdivision with title insurance coverage at every phase.
A Colorado Springs buyer closed early after title cleared prior developer encumbrances.

How Much Does Title Insurance Cost?

Title insurance premiums in Colorado are regulated by the Division of Insurance, ensuring fair, consistent rates. Expect to pay $1,000–$2,500, depending on the home’s value and endorsements. It’s a one-time cost that protects you for the lifetime of ownership.

Conclusion

Even a brand-new home can come with old problems. Colorado title insurance for new home construction ensures your investment is protected from liens, recording mistakes, or ownership disputes before you move in. With Jerad Larkin and Chicago Title Colorado, builders and buyers alike gain the peace of mind that every project starts and ends on a clear title.