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<strong>DO</strong> I <strong>NEED</strong><br />
<strong>TITLE</strong><br />
<strong>INSURANCE</strong><br />
<strong>WHEN</strong><br />
<strong>BUYING</strong> A<br />
<strong>PROPERTY</strong>?<br />
A R T I C L E S O U R C E :<br />
h t t p s : / / w w w . f i n d e r . c o m . a u / d o - i - n e e d - t i t l e - i n s u r a n c e - w h e n - b u y i n g - a - p r o p e r t y<br />
I M A G E S O U R C E :<br />
h t t p s : / / a r t e s i a n t i t l e . c o m /
Title insurance is a minor cost, but it could be a major protection for<br />
your property purchase.<br />
If you're buying a property, chances are you've already been told<br />
about a number of insurance policies. While your home and contents<br />
insurance will protect your physical investment, title insurance can<br />
be crucial in protecting your ownership rights.<br />
is title insurance?<br />
What<br />
insurance is a policy that provides coverage for risks that could<br />
Title<br />
the ownership of your home and your legal rights to it.<br />
impact<br />
title insurance is common in the United States, it's still a<br />
While<br />
relatively new product to the Australian market.<br />
are your lender will already have title insurance. Since<br />
Chances<br />
hold the title to your property as security, they'll want to<br />
they<br />
their investment and their legal rights to the property in the<br />
protect<br />
you default. But their policy doesn't cover you.<br />
event<br />
you can take out your own title insurance policy to cover<br />
However,<br />
against risks that ownership issues could arise both before<br />
yourself<br />
after settlement. While conveyancing will uncover many of<br />
and<br />
potential risks, there are other risks it can fail to uncover.<br />
these<br />
insurance also protects you from risks that arise in the future.<br />
Title<br />
can be risks such as forgery and fraud, encroachments and<br />
These<br />
unregistered easements on your property.
does it cover?<br />
What<br />
insurance covers different risks depending on whether your<br />
Title<br />
is a strata or freehold title. It will also provide different<br />
property<br />
of cover depending on whether you're a home buyer or<br />
types<br />
home owner.<br />
existing<br />
a residential home buyer, title insurance will cover risks like:<br />
For<br />
defects and planning errors<br />
Title<br />
additions and building work<br />
Illegal<br />
council rates and water rates<br />
Outstanding<br />
with existing zoning and planning laws<br />
Non-compliance<br />
claims on the land<br />
Third-party<br />
gaps<br />
Registration<br />
and forgery<br />
Fraud<br />
and boundary defects<br />
Survey<br />
For a strata home buyer, title insurance will cover risks such as:<br />
alterations<br />
Unapproved<br />
council rates and water rates<br />
Outstanding<br />
gaps<br />
Registration<br />
and forgery<br />
Fraud<br />
defects and planning errors<br />
Title<br />
due to existence of a covered title risk<br />
Unmarketability<br />
For existing homeowners, title insurance will cover risks such as:<br />
building work<br />
Illegal<br />
defects and planning errors<br />
Title<br />
and forgery<br />
Fraud<br />
and boundary defects<br />
Survey
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