Ins and outs of ti­tle in­sur­ance

Western Suburbs Weekly - - News -

IN this month’s “Did you know?” West Perth Set­tle­ments con­veyanc­ing man­ager Ju­lia Rowe dis­cusses ti­tle in­sur­ance.

IF you have bought a prop­erty re­cently, you might have been asked if you want ti­tle in­sur­ance.

There is of­ten con­fu­sion re­gard­ing what this pol­icy cov­ers andwest Perth Set­tle­ments con­veyanc­ing man­ager Ju­lia Rowe ex­plains its pur­pose.

THERE are many in­her­ent risks associated with buy­ing a home, and while your con­veyancer/ lawyer will work dili­gently to iden­tify any ti­tle de­fects of the prop­erty you in­tend to pur­chase, it is not al­ways pos­si­ble to dis­cover all the po­ten­tial risks against the ti­tle to the prop­erty.

Ti­tle in­sur­ance gives home­own­ers pro­tec­tion against fu­ture claims to these “un­known” ti­tle de­fects.

It does not seek to re­place the du­ties of your con­veyancer/lawyer, but to­gether with their ad­vice, it pro­vides you with the most com­pre­hen­sive cover to help pro­tect the le­gal own­er­ship of your home.

A ti­tle in­sur­ance pol­icy typ­i­cally in­sures against claims aris­ing from the fol­low­ing risks:

• Il­le­gal build­ing works undis­closed by the seller or coun­cil.

• Sur­vey/bound­ary de­fects undis­closed due to an out of date sur­vey.

• Forgery, fraud and iden­tity theft.

• Regis­tra­tion gap whereby a third party lodges a deal­ing against the ti­tle pre­vent­ing the Trans­fer of Land be­ing reg­is­tered.

• Un­paid rates and taxes as re­sult of an er­ror by coun­cil.

• Plan­ning and ti­tle de­fects in­clud­ing un­reg­is­tered ease­ments, covenants, en­croach­ments and ac­cess rights and non­com­pli­ance with plan­ning and zon­ing leg­is­la­tion.

Ti­tle in­sur­ance can­not deal with non-ti­tle mat­ters such as build­ing and pest in­spec­tions, con­tam­i­na­tion and na­tive ti­tle claims.

We strongly ad­vise home­buy­ers to read the pol­icy word­ing care­fully to un­der­stand the terms, con­di­tions and ex­clu­sions as these may vary be­tween in­sur­ers.

While ti­tle in­sur­ance is not com­pul­sory, and the risks of un­known ti­tle de­fects are rel­a­tively low, we rec­om­mend home­buy­ers as well as ex­ist­ing own­ers se­ri­ously con­sider tak­ing out a ti­tle in­sur­ance pol­icy.

It is a one-off rea­son­ably priced premium that of­fers pro­tec­tion for as long as the home­buyer owns the in­sured prop­erty. ■

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