Buying real estate is a big commitment and it is not something to enter into without a great deal of forethought. Many Australian property owners are not aware of title insurance and in this short article, we outline the inner workings of a typical title insurance package.
What exactly does title insurance cover?
When you take out title insurance, you should be covered for the following scenarios:
Illegal structures
Let’s say that a previous owner had added a small extension or carport, but did not seek planning permission; your title insurance policy would cover the costs of a knockdown and rebuild. There are often cases where a new owner is unaware that an added structure is indeed, illegal and they only find out after they have bought the property. We recommend carrying out thorough searches when buying real estate to ensure that everything is above board.
Incorrect property boundaries –
In the event a surveyor made a mistake and your boundaries are not true, a title insurance policy has you covered. If, for example, the previous owner built a stand-alone structure that is partially (or fully) outside the true boundaries, your insurance policy covers the cost of relocating the structure. This is a problem that occurs frequently, mainly due to the new owner not checking the boundaries; something that we recommend you do whenever acquiring real estate.
Encroaching structures
Let’s say that someone illegally built a structure that encroaches your boundaries, your title insurance policy covers the cost of removing the structure. If you did not give your consent, by law, the structure can be removed and all costs (including legal fees) are covered. Click here to learn how real estate agents make best use of SEO marketing.
Breaching planning and zoning laws
In the unlikely event you purchased a property that is not in a residential zone, your title insurance could cover all costs incurred. If the case is to be heard in court, then your cover includes all legal fees, which could be tens of thousands of dollars.
Incorrect tax and duty calculation
If your stamp duty was incorrectly assessed, a title insurance policy can cover all remuneration and legal fees.
Fraud
If your land is fraudulently sold without your knowledge, your title insurance covers you. This is a one-off payment and the policy is valid for as long as you own the property. A fraudulent mortgage could be taken out on your property without your knowledge; a situation like this needs title insurance as a form of protection.
If you would like to learn more about title insurance, start with a Google search to find a leading Australian insurer and check out the various packages they have on offer. The premium is a one-time payment and you are covered for as long as you own the property, which is a great deal.
Take out title insurance and you can sleep soundly, knowing that you are covered for any eventuality.
