Title Insurance – Is it Worth It?
What is title insurance?
Title insurance is a specialised insurance policy providing protection to buyers against unknown risks or defects in relation to their property, which may cause them loss or affect their ownership in the future. These unknown risks or defects are often pre-existing, however were not identified during the conveyancing process. Title insurance is relatively new to the Australian Market.
Why is title insurance recommended?
While conveyancing may uncover many of the risks or defects associated with a property, even the most thorough conveyancing process may not expose all hidden issues.
- Unapproved building works: Enforcement action by a Local Authority in relation to structures that have been built without a permit or council approval
- Survey and boundary defects: Incorrect boundaries or encroachment onto a neighbouring property or over an easement
- Planning and title defects: Non-compliance with existing planning and zoning laws, defects in title to the land, or unregistered covenants, easements,
- Outstanding rates and taxes: The current owner is liable for any amounts that were not paid by the previous owner
- Fraud, forgery and identity theft: Affecting the buyer’s legal ownership of the property
- Registration issues: Where another party registers an interest against the property which prevents the buyer from registering their interest
What does title insurance not cover?
- Defects discovered during building and pest inspections
- Damage or loss suffered from fire, flood, or natural disaster
- Non-title matters such as land contamination
What does title insurance cost?