Boise Real Estate – Expanded Title Insurance
Some buyers learn too late about costly subcontractor liens when they buy a new home.
Visualize this scenario: A slowing real estate market, fewer sales, and a builder with lots of unsold homes and deteriorating cashflow who finds it difficult to pay his subcontractors.
In many states, including Idaho, subcontractors can file a lien for work they have done, even after the buyer has closed escrow.
The problem for the buyer is that those liens are secured by the property if the builder fails to pay the subcontractor.
Hmmmm . . . . wonder if there are any builders in your market who match that description these days?
The end result?
An innocent homebuyer can end up the proud owner of a brand-new home with liens filed against it and a contractor who is unable to pay the liens.
And, if those liens don’t get satisfied, the subcontractor can collect them from the homeowner.
The solution?
Simple ~ the buyer can purchase “expanded coverage” title insurance at minimal cost when purchasing a new home. That coverage insures the new owner against that risk and guarantee clear title for the homebuyer.
In the Boise area, such coverage costs less than $100.
Advice to Buyers: Spend the money and get expanded coverage ~ it’s a bargain!
August 22nd, 2009 Posted in About Boise, ID, Inside Real Estate
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