Boundary Disputes - How You Can Protect Yourself With Title Insurance
As a property owner, boundary disputes with neighbours can be an unexpected and stressful issue. A boundary dispute may lead to costly legal battles, especially if the boundaries were incorrectly established during past transactions. If you’re wondering what is title insurance, title insurance is a simple solution that offers valuable peace of mind, covering risks like boundary disputes—but it only works if you have title insurance in place before you discover any boundary issues. By purchasing title insurance from First Title before settlement, you’ll be ensuring that you’re safeguarded against any unknown boundary problems (at the time you made the purchase), so you can confidently settle into your new home without the hassle and costs of an unexpected property boundary dispute.
What is a Boundary Dispute?
Boundary disputes occur when adjoining property owners disagree on the location of the legal boundary between properties. These disputes can arise from various factors, such as unclear or outdated property surveys, fences that don't align with legal boundaries, or construction that crosses into a neighbour’s land. There are several types of boundary disputes, including disagreements over fence placement, access rights, or the location of shared driveways.
Encroachment
In some cases, a boundary dispute with an adjoining property owner may arise where a property owner builds a structure such as a fence, shed, or driveway that encroaches onto the boundary of the neighbouring property. Accordingly, resolving the encroachment often requires a land survey to establish the legal boundary, negotiation between owners for a mutually agreed resolution, or legal action to remove or rectify the structure to remove the encroachment.
Inaccurate Surveys
When the boundaries of a property are incorrectly measured or recorded, this can lead to confusion over where one property ends and another begins. This can cause even bigger headaches if fences or structures are built based on that inaccurate survey data as this can create a boundary dispute between neighbours. Resolving a boundary dispute a new and accurate survey to establish the legal boundary and the removal or partial removal of the encroaching structure to remedy the encroachment.
Historical Usage
A historical usage boundary dispute arises when a property owner over many years uses or maintains a section of land (like a garden or driveway) that technically belongs to their neighbour. While it may not sound like a big deal, this can lead to confusion over the true boundary, which becomes even more complicated each time the land changes hands. Depending on the state where the land is located, the encroaching property owner may also make a claim for adverse possession due to the length of time that has passed since the encroachment occurred.
How Title Insurance Protects You from Boundary Disputes
What does title insurance cover? First Title’s insurance offers valuable protection against a boundary dispute by covering the legal and financial risks related to property boundary issues that are unknown at the time of purchase. If a property boundary dispute arises—whether due to inaccurate surveys, encroachments, or conflicting property deeds—title insurance can help cover the costs of legal fees and potential loss of property value. Importantly, it safeguards you against disputes that surface after you’ve bought the property, providing additional peace of mind and financial security. However, to access the benefits of title insurance, it must be purchased before settlement.
Title Search
A title search typically reviews public records to identify potential problems like property boundary discrepancies, however, not all issues are easily detectable. Title insurance helps by covering legal and financial risks associated with these unforeseen problems, even after settlement. This means that if any issues arise after the title search is completed, your investment remains protected.
Protection from Legal Costs
Title insurance covers the costs associated with defending any challenge against the property owner’s title resulting from any of the covered risks under the First Title policy. For example, if a boundary dispute arises after the purchase of your property, the legal costs to defend your ownership interest can be costly. Where a claim is accepted under the boundary coverage, your title insurance policy covers the legal fees and associated expenses that you would otherwise be incurring unexpectedly. Without title insurance, these costs could escalate quickly leaving you financially burdened and out of pocket. But with something as simple as title insurance coverage in place, you gain peace of mind knowing that you’ll be financially covered regardless of the unforeseen legal issues.
Defence Against Encroachments
If you discover that part of your land has been claimed by a neighbouring property owner, the process to defend your ownership interest can potentially lead to legal proceedings that are costly and complex. Title insurance can help cover the legal fees associated with defending your ownership interest where there is a boundary dispute with the neighbouring property. If an encroachment is discovered after you’ve purchased the property, your title insurance policy covers you for the legal fees and expenses that you may incur from settlement negotiations, court proceedings and where required, retrospectively assess the loss in land value.
What is Title Insurance?
Title insurance from First Title is essentially a type of insurance that protects property buyers and homeowners from certain unknown risks which affect their ownership interest because of a defect in the title of the property.
The policy insures you against actual loss as a result of a covered risk as well as legal fees and expenses that you would otherwise incur unexpectedly to defend your ownership interest.
Most importantly, title insurance must be purchased before settlement, offering additional peace of mind during the conveyancing and registration process. If you aren’t buying a home but you’re thinking of purchasing a block of land instead, First Title also offers Vacant Land Insurance.
How First Title has Protected Policy Holders from Property & Boundary Disputes
First Title has provided crucial protection for policy holders facing property and boundary disputes through their title insurance. By covering unexpected legal and financial burdens as a result of boundary discrepancies, encroachments, and ownership risks, First Title policies covers home buyers and home owners from potential legal costs and expenses.
And it’s easier than you think, simply contact First Title now for a quick quote.
With First Title insurance, you can confidently purchase your home knowing you have robust protection in place for hidden title issues or boundary disputes with your neighbours.
