Title issues are commonly anticipated on existing properties that have experienced multiple homeowners over the years, or have undergone renovations such as swimming pools, decks, additions or ADUs.

Often, the perception is that empty land purchased for the purpose of constructing new developments will have fewer problems. But that couldn’t be further from the truth and homebuilders and developers who are savvy enough to engage and retain title professionals through the construction process are more likely to emerge with cleaner titles when it comes time to sell the individual units.

Here are some roadblocks homebuilders can encounter and how the title company can help navigate the challenges.

Boundary Disputes and Easements

Vacant land may have complex ownership and boundary issues that go back over time and the first thing a title company will do is obtain a survey that clearly establishes the boundaries of the land purchased.

They will also clarify existing rights to the property including utility easements or rights of way that may leave a murky trail in the public record or have been subject to transfer at some point in time.

Zoning vs. Municipal Restrictions

Some builders and developers think they are home free if the zoning codes align with their building intentions, but zoning parameters change over time in it’s imperative that this is investigated to ensure no recent changes – for instance lot size requirements – are in play. In addition, many municipalities have even stricter codes when it comes to design elements such as fence height, requirements for adequate parking, or environmental requirements such as green spaces.

Partnering early on with a title agency with local knowledge can assist builders in assuring they are meeting all of the requirements as they work through the planning and design process.

Municipal Liens and Contractor Liens

Another hidden and often lesser-known trap for developers is municipal liens. These liens which are often not of record can be due to unpaid property taxes, environmental cleanup costs required by the city or the state or code violations. A title agent can conduct a separate municipal lien search to uncover and advise how to resolve these issues.

In addition, enough cannot be said about the importance of having a title company on hand throughout the process to keep the builder aware of any mechanics’ liens that appear in the record from subcontractors, suppliers, or laborers who may have recorded liens for unpaid work during the construction phase.

Many of these issues take time to bring to a successful resolution and no homebuilder wants to encounter these roadblocks when they are about to put their newly built homes on the market.

Working with an experienced local title agent who is well aware of the unique requirements within the different municipalities will ensure homebuilders have a clear path to successfully transfer their new builds to eager homebuyers when the time comes.

At FAN, we maintain the highest standards in providing title, escrow and closing services throughout Florida for homebuilders and developers. Contact us today to learn how we can help you successfully navigate the complicated title issues that can emerge in the course of your homebuilding projects.