Many Florida buyers assume new construction is clean from a title perspective — no prior owners, no old mortgages, no inherited liens. That assumption has cost homeowners significant money. New builds carry their own distinct title risks: unpaid subcontractor claims, construction liens under Chapter 713 of the Florida Statutes, errors in the legal description from a freshly platted subdivision, and — in rare but real cases — builder insolvency that leaves suppliers chasing the only asset they can reach: your home.
Understanding how title insurance works in a new construction transaction protects your investment from the moment the deed records. Here is what buyers, and the agents representing them, need to know.
Why Does New Construction Need Title Insurance?
New construction properties are not free of title risk — they carry a specific and often underappreciated risk: construction liens. Under Florida's Construction Lien Law (Chapter 713, Florida Statutes), contractors, subcontractors, and material suppliers who furnish labor or materials to a project can file a claim against the real property if the builder fails to pay them. This right survives the closing, and it can attach to the property even if you, the buyer, paid the builder in full.
Florida law gives materialmen and subcontractors up to 90 days after their final furnishing of labor or materials to file a lien. That window extends well past most closings. A buyer who takes title without an owner's title insurance policy absorbs that exposure directly — and resolving a valid construction lien typically requires either paying the claimant or hiring an attorney to contest it.
What Is a Notice of Commencement and Why Does It Matter?
A Notice of Commencement is a document the owner or builder records in the county public records before construction begins. It establishes the start date for lien rights, identifies the property and the owner, and names the construction lender if one is involved. For buyers, this document matters because it anchors the priority of any construction liens relative to your closing date.
Title companies examine the Notice of Commencement carefully during the title search. A missing or improperly recorded notice can affect the order in which lien claimants are paid if the builder defaults, and it can complicate the title company's ability to issue a clean owner's policy. If the builder failed to record one, or recorded it with incorrect information, the title examiner will flag the defect before you reach the closing table.
Does the Builder's Title Insurance Cover the Buyer?
No — and this is the most common misconception in new construction closings. Builders often carry their own title insurance to protect their interest during the construction phase, typically as a condition of their construction loan. That policy runs in the builder's favor, not yours. It does not transfer to the buyer at closing, and it does not protect you against claims that arise after the deed records.
Buyers need their own owner's title insurance policy — issued in their name, effective on the closing date. Without it, any construction lien that surfaces after move-in is the buyer's problem to resolve, regardless of whether the builder was the one who failed to pay the subcontractor.
Closing on a new construction home in Florida?
Coastal Collective Title handles new construction closings in every Florida county. Call us at 813-422-1328 or place an order online. We respond within 2 hours on business days.
How Does the Title Search Work for New Construction?
The title examination for a new construction home goes deeper than a typical resale search. The title company must trace the developer's chain of title back through the original land acquisition, review the recorded subdivision plat, examine any blanket construction financing documents encumbering multiple lots, and confirm the Notice of Commencement is properly recorded and not expired.
This matters because developer-level issues — an unpaid purchase-money mortgage on the parent parcel, cross-collateralized debt across multiple lots within the same community, or an improperly released blanket lien — can affect a single home within the subdivision. According to the Florida Department of Financial Services, construction defect and construction lien claims account for a disproportionate share of title insurance claims filed by homeowners in the first five years of ownership.
The title company will also coordinate lien waiver collection from the general contractor and major subcontractors as a closing requirement, listed in Schedule B-I of the title commitment. These waivers confirm that the parties who worked on your home have been paid and release any lien rights for the work covered by that payment.
What Are the Risks If a Builder Goes Out of Business After Closing?
Builder insolvency after closing is not common, but it happens — and the consequences for buyers without title insurance can be severe. When a builder files for bankruptcy or simply ceases operations, unpaid subcontractors and suppliers may pursue the only asset still available to them: the homes they helped build. A valid construction lien filed within the statutory period can force a homeowner into mediation, settlement, or, in extreme cases, litigation to clear the title.
An owner's title insurance policy issued at closing covers this scenario. The underwriter defends the insured's title against covered claims and, if the lien is valid, pays the loss up to the policy amount. That coverage costs a one-time premium at closing and runs for as long as you or your heirs hold an interest in the property — no annual renewals, no expiration.
Does CCT Handle New Construction Closings Across All of Florida?
Coastal Collective Title handles new construction closings in every Florida county. Our team is experienced with builder-specific purchase contracts, Notice of Commencement requirements, lien waiver coordination, and subdivision plat review. Whether you are buying in a large Tampa Bay master-planned community, a boutique coastal development on the Gulf or Atlantic, or a new-build in a smaller inland market, we manage the title examination and closing from open order to recorded deed.
We serve buyers, builders, lenders, and REALTORS statewide — from Escambia County in the Panhandle to Miami-Dade and Monroe in South Florida. Reach us directly at 813-422-1328.
Lori LaCoppola
Owner & Managing Partner
Lori founded Coastal Collective Title to deliver a premium, relationship-first closing experience across Florida. With deep title industry expertise, she oversees every transaction with precision and personal attention.
Frequently Asked Questions
- Can I use the builder's preferred title company for new construction?
- Yes, but you are not required to. Florida law gives buyers the right to choose their own title company regardless of any preference written into the builder's purchase agreement. Using an independent title company ensures the examination is conducted without any conflict of interest tied to the builder-lender relationship.
- What is a lien waiver and when should the title company collect it?
- A lien waiver is a written release signed by a contractor, subcontractor, or materialman confirming they have been paid and waive the right to file a lien for that payment period. In a new construction closing, the title company typically collects final lien waivers from the general contractor and major subcontractors as a requirement listed in Schedule B-I of the title commitment.
- How long does a new construction title search take in Florida?
- New construction title searches often take longer than resale searches. The title company must trace the developer's chain of title back through the land acquisition, review the recorded plat, examine any construction financing documents, and confirm the Notice of Commencement is properly recorded. Expect five to ten business days for a standard search in a residential subdivision.
- Is title insurance required on a new construction cash purchase?
- Florida law does not require title insurance on cash purchases. But the construction lien risk is real — a subcontractor can file a valid lien up to 90 days after closing, even if the buyer paid the builder in full. Skipping the owner's policy on a new-build cash purchase is one of the more costly risks Florida buyers take.
- Does Coastal Collective Title handle new construction closings outside Hillsborough County?
- Absolutely. Coastal Collective Title is licensed to handle closings throughout Florida — from Escambia County in the Panhandle to Monroe County in the Keys. Whether you are closing on new construction in Sarasota, St. Johns, Brevard, or Palm Beach County, our team delivers the same dedicated service and title expertise.
Related Guides
- How Florida Title Insurance Is Calculated (2026 Promulgated Rates)
- What Is a Title Search in Florida — and Why It Matters at Closing
- What Every Florida REALTOR Should Know About the Title Commitment
- Earnest Money Deposits and Wire Fraud: How to Send Funds Safely
- What Actually Happens at a Florida Closing Table
Disclaimer:This article is provided for general informational purposes only and does not constitute legal or title insurance advice. Florida's Construction Lien Law (Chapter 713, Florida Statutes) governs lien rights and timelines discussed herein; consult a licensed Florida real estate attorney for guidance specific to your transaction. Coastal Collective Title is a licensed Florida title insurance agency.