Does A New Build Still Need Title Insurance?

05/04/2026 11:21 AM Mark Goodman

Nobody wants to pay for insurance that they’ll never need, so you may assume that you can skip title insurance if you plan to build on a vacant lot. After all, title insurance isn’t going to protect you from issues that originate after you’ve become the owner, so do you really need title insurance if you’re just buying an empty plot of land? In the vast majority of cases, title insurance is still an incredibly wise decision. We explain why it’s still wise to purchase title insurance even if you’re starting new construction on an empty property.

Title Insurance For New Builds

The main reason that you should still consider title insurance even on a new build or a vacant lot that you plan to build on is because title insurance doesn’t just protect you from issues associated with the physical structure on the land. A title insurance provides protection for issues tied to the property itself. And even though there may be no physical structure on the property, that land has likely had its ownership structure detailed for decades or even hundreds of years before you had the opportunity to purchase it.

Because of this, there are plenty of potential issues that may exist even though there isn’t a physical structure on the land. Some title issues that could exist on empty lots and vacant parcels of land include:

Improper/Poorly documented property subdivision

Municipal liens

Mechanics liens

Unpaid property taxes

Land use concerns

Zoning issues

Boundary disputes

Easements

Contested wills

Forgeries

And while it’s rare for these issues to exist, and even rarer that they slip by your title agent before closing, the fact of the matter is that the record keeping on these types of lots isn’t always impeccable. It’s not always easy to find a clear title chain on vacant or abandoned lots, and other times issues go unnoticed until someone buys the property and starts improvements. The last thing you need when you’re pouring money into a new construction is a title issue that requires your personal and financial attention. Even if the issue turns out to be nothing, you’ll spend time and money sorting it out if you don’t have title insurance.

Whether you’re buying a property with a complex title chain or a vacant lot without any apparent issues, let the team at Commercial Partners research the property and ensure your interests are protected now and in the future. For more information on how we can help with any aspect of your commercial purchase, reach out to the team at Commercial Partners today at (612) 337-2470.