Sometimes it feels like the fees, charges and levies associated with purchasing property are endless. Most are unavoidable, and we have to cop them on the chin. Title Insurance is optional and is worthy of consideration before deciding whether or not to take it out.
Title Insurance can reduce out of pocket expenses if there’s an issue with the property. We highly recommend taking it out at settlement. There are policies for residential properties, strata properties, commercial properties and vacant land.
It’s a good idea to have Title Insurance in case of circumstances such as boundary disputes, extensions or unpaid rates.
Costs for boundary disputes can exceed $15,000 for a boundary realignment. Similarly, if council approval wasn’t granted for building work such as an extension or renovations, the costs can be significant. In cases where the structure doesn’t meet code and council approval isn’t granted, the structure may need to be demolished at your expense.
In conveyancing, we often hear the story of two neighbours who originally had a great relationship. Then, something occurred that caused them to have a falling out. Neighbour one knew that neighbour two hadn’t gained council approval for renovations he had done. So, neighbour one contacted the council and made them aware. This created much misery and frustration for neighbour two.
I guess the moral of the story is, make sure you play within the rules, or never upset your neighbour.
But the real moral of the story for everyone should be, how can you possibly be confident that you’ll never need Title Insurance? And with Title Insurance starting at just over $500 (based on property value) is it worth the gamble?
You only pay one premium at the beginning, and there are no annual renewal costs. There’s also no excess if you ever need to make a claim. If when you purchase the property, you are aware of any potential issues, the cover limit may reduce and it is best to discuss with the cover provider directly.
The company we recommend to our clients for Title Insurance is ‘Stewart Title’.
If you have any queries about Title Insurance, contact us here and we’ll be happy to share our knowledge. We can also put you in contact with our BDM for further information.