Australia has one of the best land registration systems in the world, however it does not protect buyers against all potential risks. Something as simple as a fault in a property document can result in a defect on the title to your land.
Hear All About It
Fraud, unregistered easements and rights of way, encroachments on land and loss sustained due to forced removal of an illegal structure, are just a few of the other risks that can affect a buyer’s interest in a property, especially when excess costs and legal fees are required to rectify these issues.
Aside from providing the purchaser with security in the title to the land, and provision for legal fees incurred to defend against the aforementioned problems, Title Insurance can also facilitate a smoother settlement by eliminating the risks and issues as they arise, and providing 'gap' coverage for the period between settlement and registration.
Low Cost Conveyancing Services, while not affiliated with any specific Title Insurance providers, can facilitate an application for this insurance product and would advise its clients to do so in order to minimise risk.
How does this help me?
The following is a true story of a client that found herself in a nightmare that could have been avoided.
“One week after purchasing a property, before the bank had submitted the conveyancing paperwork to the Titles Office to complete the transfer of Title into the client’s name, a disgruntled ex-partner made a claim against the seller and lodged a caveat over the property. When the lender lodged the paperwork, the Titles Office rejected it. Even though the client has paid for the house, she doesn’t own it. The bottom line is that it could cost her tens of thousands of Dollars to fight for her home in court.”
Another True Example
“A client called us approximately six months after settlement and advised that the back half of his house was sinking into the ground. The seller had failed to disclose that this section of the house was actually an illegal structure built without a permit, which the council now wants to pull down. The estimated loss is over $60,000.”
Moral of the story
Title insurance covers for the unexpected problems as touched on above, plus a whole lot more! Don't assume the Conveyancer, Solicitor or lender cover these areas! Don't get caught with potentially thousands of dollars in legal costs, or the heart ache and financial expense of incorrect boundaries, illegal structures or problems with actually becoming the owner after settlement. Its a 'one off cost' and you are covered for the life of owning the property. A small price to pay for piece of mind.