Receiving an unexpected visit from your local council or finding a letter in your mailbox about unapproved construction is every property owner’s nightmare. Unfortunately, these situations are more common than many realise—and if it happens to you, resolving the issue and covering the costs often becomes your responsibility.
Purchasing a property with unapproved renovations, or discovering illegal extensions or structures that lack council approval, can lead to significant expenses for repairs or even demolition. Often, council intervention is not the result of a direct complaint, but rather stems from routine inspections, neighbour’s reporting, or other unrelated council activities. If unapproved building work is identified - such as a deck, extension, shed, or internal renovation - it can quickly become a costly and stressful issue for the owner.
Title Insurance offers valuable protection when purchasing a property. With a single upfront payment, this policy can shield you from the financial consequences of having illegal renovations, as well as other risks like fraud, forgery, and errors in council rates or land tax assessments. Should you be able to obtain retrospective approval for unauthorised building work in NSW, Title Insurance can cover the associated costs—helping you avoid unexpected out-of-pocket expenses.
Case Study: $100,000 Covered for Illegal Renovations
One of our NSW clients purchased a charming 1930s home as an investment property. Shortly after the tenant moved in, a flooded bathroom prompted the owner to apply for a Building Certificate, suspecting some past substandard work.
The council’s response confirmed their fears: the deck, shed and several internal alterations, including the bathroom itself, had all been built without approval by a previous owner. The property would need significant works to obtain retrospective approval or risk demolition.
Luckily, the owner had taken out Title Insurance when they bought the property. Their policy covered ‘illegal building work,’ so after engaging building consultants and a surveyor, we accepted the claim. The payout was $100,000, covering the consultants’ fees and much of the required building work, saving the owner from a huge out-of-pocket cost.
Why Consider Title Insurance?
When you buy a property, you hope the purchase process will uncover any hidden issues - but even the most thorough conveyancing checks can miss certain risks.
This example demonstrates how Title Insurance provided crucial protection for the homeowner. Here are some reasons why investing in Title Insurance can be a valuable decision:
- It’s a one-off premium paid at purchase; coverage lasts for as long as you own the property.
- Title Insurance can provide protection against risks that may not be identified during even the most thorough conveyancing checks.
- Title Insurance may cover illegal building works, plus other issues like fraud, forgery or rate miscalculations.
Ready to protect your property? Request your Title Insurance coverage today.
What is Title Insurance?
Title Insurance is a policy that can protect property owners from certain legal and financial risks tied to their property, such as illegal building works or title defects.
What else does Title Insurance cover?
Beyond illegal building works or renovations, Title Insurance covers issues like fraud, forgery, zoning breaches or incorrectly calculated rates and taxes.
What does Title Insurance not cover?
Like all insurance products, Title Insurance has exclusions - for example, risks that arise after you obtain insurance or risks caused by you after obtaining the insurance.
What does Title Insurance cost and how long does Title Insurance last?
Purchasing a property with renovations that you don't know were built without approval doesn’t have to be a risky decision. You pay a one-off premium at purchase, and your cover lasts for as long as you own the property — there are no ongoing fees.
Where can I learn more?
From sheds to extensions, Title Insurance can protect you from the costs of illegal building works.
Explore our complete Title Insurance guide to understand how Title Insurance works, what it covers and how it could save you from costly surprises. Get peace of mind in minutes — request your Title Insurance quote now.
