So you’re buying vacant land? No buildings, no problems – right? Unfortunately, it might not be that simple.
Even if your vacant land has nothing on it but a few tufts of grass, property ownership risks can still arise. Here are some of the common risks to consider and why title insurance for vacant land could be right for you.
Property Ownership Risks
There’s a handful of property ownership risks that can arise with almost every type of property – not just vacant blocks. Although these risks don’t happen for every vacant lot owner, if they do, they can be costly and inconvenient. Vacant land risks can include:
Encroachments
Boundary fences or neighbouring structures that are found to encroach onto the boundary of your land and prevent you from using it fully.
Boundary Disputes
Incorrect property boundaries as shown on a land survey may lead to conflicts with neighbouring landowners, potentially requiring legal resolutions.
Zoning and Land Use Restrictions
Discovering only after settlement that you can’t use your land for the purpose that you intend to use it.
Title Defects or Errors in Title Searches
Unknown risks due to errors contained in certain public property searches carried out when you purchased your land.
Encumbrances
Unknown and outstanding rates, charges, land tax or strata fees owed by the previous owner that were not adjusted correctly by your conveyancing practitioner.
Title Fraud
A fraudulent mortgage taken against your land, or fraud that might result in your land being sold to another owner.
Vacant Land Insurance To Consider
Before purchasing vacant land blocks in Australia, you should consider title insurance for vacant land. Title insurance for vacant land safeguards against big issues such as undisclosed easements, encroachments, fraud, or errors in public records that could affect your ownership rights. For vacant land, it also covers zoning violations, access disputes, or restrictions on land use that may arise after purchase. Without title insurance for vacant land, resolving these issues can lead to costly legal battles and could significantly delay the intended use of your land. By securing title insurance, you gain peace of mind and financial security, ensuring your ownership rights are protected and your investment is safe from unexpected legal and financial risks.
Do You Need To Insure Vacant Land?
While title insurance for vacant land is not legally mandated, it can really save suffering significant legal expenses. For example, the cost of vacant land title insurance is a one-off single premium with First Title at the time of settlement and you will cover your property for the entirety of the time you hold ownership. Coverage is transferable to your beneficiaries if they are owners of the land. In the case of a successful claim, the First Title team will guide you through the claims process and cover the necessary costs within the terms of the policy. As such, a successful claim through insurance of your vacant land could potentially save you thousands.
Insurance For Your Vacant Land With First Title
Your vacant land can hold lots of opportunities and excitement, but it can be a great idea to consider the risks too and weigh up title insurance for your vacant land. With this in mind, you can get a quick quote in just a few minutes for title insurance with First Title, to see if our cover is right for you. Alternatively, if you are looking to buy a home, then be sure to check out our residential title insurance.
- Get a Quote: Take the first step toward protecting your property today.
- Need help? Contact Us to speak with our team.
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