How Long Does It Take To Get Title Insurance?
Many steps in the home purchasing process can take a long time to complete. Fortunately, getting title insurance is comparatively a quick task and typically takes less time than you might think.
Read on to discover how long it takes to get title insurance and exactly what title insurance covers.
Why is title insurance important to consider?
So, what exactly is title insurance?
Title insurance is a valuable investment that can provide extra protection when it comes to a range of property ownership risks and financial losses that may result from them, including:
- Incorrect boundaries
- Unapproved building works
- Planning and zoning issues
- Errors on property searches and enquiries
- Encroaching structures
A title insurance policy requires a one-off payment that will provide cover for the entire period you or your beneficiary own the property. If any of the above situations arise, title insurance could potentially save property owners thousands of dollars. Without title insurance, a property owner would be responsible for any financial losses and legal fees resulting from a title defect, which could be costly and time-consuming to resolve.
Your coverage will depend on your type of property (i.e. residential home, strata unit or vacant land) and whether you are intending to buy or already own the property in question. There are also different types of people who can benefit from title insurance, including property buyers, and lenders.
Requesting cover is simple, meaning you only need to submit your application and certain documents to finalise the process. Then you can simply set and forget, with extra peace of mind knowing that you are protected if any of the covered risks with your property title arise.
How long does the title insurance process typically take?
Considering the importance of title insurance, the process of finalising your policy is relatively short.
Filling out an enquiry form with First Title will generally take only 10-15 minutes. However, the entire process may take several weeks depending on the scope, exchange and processing of relevant documents. A policy doesn’t become active until underwriting is complete, payment is received, and settlement of the property purchase has taken place.
What can slow down being covered?
There are several factors that may potentially slow down the process of receiving title insurance, including:
- Issues with title: If there are any issues with the title of the property, such as outstanding liens or covenants, it can take longer to resolve these issues and clear the title before title insurance can be issued.
- Missing or incomplete information: If any required information is missing from the application, or if the information provided is incomplete, it can take longer to process the application.
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