Working with Home Builders: A Title Company's Perspective

New Construction Transactions from the Title Company's Chair

From where we sit at the closing table, new construction transactions look different from resales. Not necessarily more complicated — but different in ways that matter for everyone involved.

The Builder Controls the Early Timeline

On new construction, the builder controls almost everything: their contract, their timeline, their preferred title company and lender, and their upgrade selection process.

For title companies, our primary relationship on new construction deals is often with the builder's sales team before it's with the buyer. We know their standard contract terms and their typical close-out schedule.

What buyers should understand: The builder's preferred title company is typically efficient and experienced with that builder's products. The trade-off is that the company's primary customer relationship is with the builder. An independent title company's loyalty is entirely to the buyer.

Both can close your deal successfully. The question is who's advocating for you if there's a dispute.

The Mechanics' Lien Window: Critical Timing

In Virginia, subcontractors and suppliers who weren't paid can file mechanic's liens within a statutory period after the work was completed — even after closing.

This is why:

• Owner's title insurance is important on new construction. A standard owner's policy covers mechanic's liens that arise from work done before closing.
• Final lien waivers from major subcontractors are standard in well-run builder closings. Your title company should confirm these are obtained.

The Construction Loan Payoff

Before your deed can be recorded free and clear, the builder's construction loan must be paid off or the specific lot released. This is coordinated at closing.

When this coordination fails — say, the construction lender's payoff figure was incorrect — the closing can be delayed. Title companies with experience handling builder closings know how to get ahead of these issues.

Reading the Plat and Legal Description

The title examiner confirms that:

HOA Setup and the Declarant's Rights

New construction communities almost always have HOAs — at the point of the first sale, the HOA is typically still controlled by the builder (the "declarant").

Buyers should read the Declaration carefully to understand:

What We Tell Buyers in New Construction Closing Meetings

When we sit with a new construction buyer at closing, a selected title provider may make sure they understand: