Title Insurance

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Buying a property will be the single biggest investment of your life. .

The AICSA recommends that you seriously consider taking out a Title Insurance Policy when you purchase property.

Title Insurance is inexpensive. The premium is a one-off low cost payment that protects a purchaser for the life of ownership, against claims for various unknown and known risks that threaten ownership and use (including structures) of the property until its resale.

Read more: Transcript from below video...
‘Unknown risks’ are risks that are not identified during the conveyancing transaction or before settlement. Problems may arise during property ownership and cause financial loss to the owner. Usually, such risks cannot be easily identified, even with the full range of inspections and reports.

‘Known risks’ are any risks disclosed by the vendor or otherwise discovered by the purchaser prior to settlement (e.g. building works completed without council approval, a building encroaching onto or from the land being purchased, or an extension having been built on a utility easement).

If there are no known risks evident a policy will be issued for ‘clean title’.

Under the traditional conveyancing process in South Australia, where a defect in title is discovered, a purchaser has a number of options

  • if the contract has not been signed by all parties or the purchaser has not lost the right to cool off, the purchaser may choose not to proceed i.e. cool off or may try to negotiate a reduction in the purchase price
  • if the contract has been concluded and any right to cool off has passed, the purchaser may have a right to rescind (in limited circumstances) or to claim compensation

Title Insurance provides another option for the purchaser – who can take out title insurance in respect of a known title defect.

This provides a quick and inexpensive route out of time-consuming legal problems without the need to prove negligence. It will cover the costs of defending the title should problems ever arise and provide compensation if the title cannot be defended.

What does Title Insurance not do?

It doesn’t replace a competent Conveyancer – although it will cover various negligent mistakes made by a conveyancer. In addition, Title Insurance cannot deal with non-title matters such as contamination – and the policy wording needs to be carefully read to understand the terms, conditions and exclusions – which may vary from title insurer to title insurer.

I already own my home, can I still take out title insurance?

Yes – title Insurance is available for a property which is already owned. You receive the same types of protection against fraud and forgery and ownership rights.

Note, that title insurance does not cover pest and building inspections – it is specifically designed to cover title defects and ownership issues.

AICSA Partner –  First Title

A title insurance policy is valid whilst the person owns the insured property.

It is important to read the policy document provided by the insurer to fully understand what your policy cover provides.

AICSA Partner – First Title can assist you with your title insurance needs.

Contact Fiona via email fschwab@firsttitle.com.au or phone 0404 824 900.

CLICK here to view the First Title Website.

CLICK Here to and fill out the online form to Lodge a Claim.

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