Title Insurance – What is it and do you need it?

Title Insurance is all about coverage for risks AFTER the date of Settlement (risks not known or, known risks - with additional premium) to all parties prior to signing Contract and before Settlement) via compensation for loss in value or reimbursement of expenses in the future. 

It is a specialised type of insurance that provides protection to home buyers and existing home owners of residential property.

When buying a property there are many inherent risks that may cause you loss or affect your ownership.

Title Insurance is the only means to provide the most comprehensive protection against risks that may affect your legal ownership of your home.

Title Insurance has only been in the Australian market for about 12 years – before then it did not exist.

However, in America – it is part of the Conveyancing Process and is effected on Purchase files and has been around in that Country since the 1860s.

What does title insurance cover?

For a home buyer – Residential: 

• Illegal Building Work
• Survey/Boundary Defects
• Registration Gap
• Fraud, Forgery & Identity Theft
• Planning & Title Defects
• Outstanding Rates and Taxes

For a home buyer – Strata:

• Unapproved Alterations
• Registration Gap
• Fraud, Forgery & Identity Theft
• Planning & Title Defects
• Outstanding Rates and Taxes

For an existing homeowner:   

• Fraud, Forgery & Identity Theft
• Illegal Building Work
• Survey/Boundary Defects
• Planning & Title Defects

For vacant land:

• Unsatisfied Conditions of Development Approvals
• Fraud, Forgery & Identity Theft
• Survey/Boundary Defects
• Registration Gap
• Planning & Title Defects
• Outstanding Rates and Taxes

What does Title Insurance cost?

1. One time premium provides protection forever your Conveyancer will advise you of premiums.
2. No excess payable on claims.
3. No fault claims process means you don’t have to prove fault or negligence - you only need to prove that you have suffered actual loss based on cover that the policy provides.
4. No cap on cover apart from the policy amount.
5. 200% ‘inflation’ allowance for increases in the value of the property over time.

About Garth Brown Garth Brown is the Founder and Director of Brown and Brown Conveyancers one of Sydney’s leading Conveyancing Firms. With 20 years experience as a practicing Conveyancer he has assisted hundreds of Clients to navigate through the maze of conveyancing issues when buying and selling property. Visit www.conveyancers.net.au/