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6 common risks title insurance covers you for

Most property purchases have a few things in common: they involve some sort of boundary, neighbouring properties, planning zones and rates. Whether you’re buying (or have already bought) a residential, commercial or strata property or vacant land, these common features can bring up some complex risks and issues – even if due diligence has been carried out by yourself and your conveyancer during the purchase process. Title insurance in Australia is designed to address these common property ownership risks and issues. 
While each property type includes its own distinctive risks, these are six of the most common areas that title insurance can typically cover.

Incorrect boundaries

Boundary fences might have been built or installed before you purchased your property. This might prevent you from accessing part of your property, or it might encroach onto your neighbour’s property. If you have title insurance, you could submit a claim for support and financial cover to rectify this.

Unapproved building works

A previous owner of a property might have carried out building works without council approval, and this might only become apparent when the new owner applies to carry out their own renovation or building works. Common ‘dodgy’ works can include decks, granny flats, carports, garages and extensions. If this issue arises, a council might typically require you to repair or demolish the unapproved building works – processes that title insurance could help with if you have cover in place.

Encroaching structures built on your land

It may be the case that a built structure, other than a boundary wall or fence, encroaches onto your property. Some examples might be sheds, carports, retaining walls and even gardens. Your title insurance provider could help you to arrive at a solution.

Planning and zoning restrictions

Planning and zoning determines how a property can be used. If a zoning violation or use restriction limits you from using the property, then title insurance might assist in this situation. One example is if you can’t use your land as your home because it isn’t zoned as residential, and this wasn’t disclosed to you prior to settlement.

Wrongly calculated rates, land tax or strata levies

Sometimes despite everyone’s best intentions, mistakes can happen. If errors have been made in relation to title transfers, land tax, strata levies or water rates and you’re facing a large outstanding bill, then your first port of call could be your title insurance provider.

Fraud and identity theft

Mortgage-related identity theft and fraud does happen from time to time. Title insurance can cover certain situations such as a fraudulent mortgage being taken out against your land, or someone else lodging a right or interest on the title after the Policy Date which prevents you from becoming the registered owner.

It truly can be beneficial to have a title insurance policy in place with a provider such as First Title Insurance. In the event that you need to make a claim, your provider could help you navigate these often-complex issues and cover costs to resolve the problem.

Your property type will determine what title insurance covers in each case. You can get a quick quote to view all the policy documents in detail, and see what you could claim for if issues do arise. There are no recurring premiums for our title insurance, and the one-time premium activates the policy for the entire time you own the property.

Title insurance can give you welcome peace of mind that you have reliable cover for the most common property ownership risks. To gain title insurance cover, you can request cover.