Everything you need to know about title insurance
Owning property – whether it’s a house, strata property or vacant land – comes with its fair share of risk. Title insurance is the protection that helps mitigate that risk.
When you purchase a property, detailed inspections and paperwork searches disclose any areas of concern that need to be addressed before you sign on the dotted line.
But pre-existing- often hidden- issues can arise AFTER you take over the title of a property. Rectifying these issues can be very costly. Title insurance acts as your financial safety net and provides a degree of risk management in the conveyancing transaction.
How does title insurance work?
- One-off premium that provides lifetime protection
- No excess payable on claims
- No-fault claims process means you don’t have to prove negligence, you only need to prove that you’ve suffered actual loss based on cover that your policy provides.
Is title insurance a requirement?
Obtaining title insurance is NOT compulsory, but it makes sense to insure what is most likely one of your biggest investments. At Impero Conveyancing, we strongly encourage our clients to consider title insurance.
What am I covered for?
Most title insurance policies are quite similar, so it’s important to research your options and discuss them with your advisors.
Here are some of the most common property ownerships risks that you’ll want to be covered against:
- Illegal structures: building works or renovations done without council approval, your consent, or knowledge – like carports or decks.
- Incorrect boundaries: this includes issues such as fences and retaining walls that haven’t been built on the true boundary.
- Encroaching structures: if someone else, like a neighbour, builds a structure on your land without your knowledge or consent.
- Planning and zoning laws: non-compliance with existing planning and zoning laws
- Incorrectly calculated or outstanding land tax, council rates, water rates or strata levies.
- Fraud, forgery and identity theft that might result in your land being sold or fraudulent mortgage taken against your land.
At the end of the day, we are all about providing peace of mind when it comes to your property. Title insurance can eliminate the worry caused by the unknown and allows you to focus on the future.
You can purchase title insurance anytime from the time of purchase to after settlement, and the policy applies until you sell the property.
Every property comes with its unique risks. Talk to your property conveyancer about your options and they can help you decide on what should be included in your policy coverage.
If you have any questions, please call us on 4910 0522.