Title Insurance

Our understanding is that title insurance covers you upon purchase in the event of illegal building work (up to $150k), boundry disputes, fraud, forgery and ID theft that results in you being deprived of ownership of the land, outstanding rates and taxes.

We have been quote $430 for this cover, it is a one-off payment and there is not set time peroid of cover (i.e. transfers upon death, settlement in family law court)

Worthwhile having for a relatively stock standard residential IP?

 

I think the answer to this question could be "it depends"

For example when we bought our 1880s Victorian terrace in inner Sydney we purchased title insurance. This is because the property had some work done on it in the past. Legal work? Maybe not. The boundaries are also questionable, quite possible that these have been infringed upon by our neighbours or our property has infringed upon their boundaries. We weren't so worried about the possibility of the electricity, roads, gas etc trying to make a claim on our land (we think this would be very unlikely) but the insurance covers you for that too.

So in our case we got it. Though I'm not sure if it would be as useful if you were buying a relatively new home in the burbs.

 

Relatively new in the suburbs is what were in cooling off for. Main concern was a sewer easement close to the rear of the house but the build is less than 10 years old, as is everything in the area, so good chance it's all been done correctly.

 

Yes, definitely IMO. Also covers you against a Black Vs Garnock scenario: http://www.shirelegal.com.au/Sites/466/Images Files/Newsletter article re Black v Garnock[1].pdf

 

I think still worthwhile having. I am reminded of a case, some years ago now, where in a new estate the right house was constructed on the wrong Lot - not just one either - a few of them - all assuming the first house was on the correct Lot (which it wasn't).

 

Thanks Alan.

Title Insurance it is!

 

I've been told the house itself won't be covered due to the building report calling out:

1. The back shed and side pergola may not be approved
2. A potential problem with a brink support beam and recommended an engineer to inspect. Engineer found no fault.

I understand it's probably still worth taking out the insurance for the other reasons? Would this be prudent?

 

Thats right... the insurance covers you against unapproved works you dont know about... they will argue that you knew about the possible unapproved works before taking out the policy and so the onus is on the purchaser to verify and obtain a S147 certificate

 

i would give the title insurers a call to see what will and won't be covered.
stewart title is one such title insurer and they can be contacted on 1800 300 440. They will be able to advise what is and isn't included within the coverage. Keep a written note of your conversation.