Is it worth getting title insurance for your vacant land?
Vacant land purchases come with so much promise: from future investments to living the self-builder dream, a piece of vacant land offers so many possibilities. However, just because there aren’t any structures on it doesn’t mean that there can’t be any hidden issues with a land purchase - and those issues can quickly become expensive. By getting title insurance, you can protect yourself and your purchase.
What kind of issues are common with vacant land settlements?
We cover a lot of customers with title insurance on land purchases, so we understand the challenges unique to vacant lots and how they differ from existing homes. Some of the most common claims we have covered for land purchasers are:
• Incorrect boundaries that remained undiscovered during the conveyancing process;
• Encroaching structures that are either wholly or partially on the owner’s land;
• Planning and zoning issues, like zoning laws that prevent the owner from using their property as a home;
• Errors on property searches leading to problems with title;
• Adjustment errors leading to unknown outstanding taxes and fees;
• Identity theft and fraud leading to someone illegally transferring the property or taking out a mortgage on it.
Boundary issues are particularly common, and can be surprisingly expensive to correct. For instance, one of our customers ordered a survey of their newly purchased land and found out that their neighbour’s fence and retaining wall were encroaching on their property. First Title paid out $7,000 to relocate the fence and retaining wall.
Is it worth getting title insurance on a land purchase?
Buying property is often the biggest purchase we make, so it’s important to protect that investment properly. While you might be hesitant to add another item to the purchasing budget, there’s good news for you - title insurance is an affordable, one-off fee that is calculated based on the value of your land, covering you for the entire duration of owning the title. Get a quick quote here.
Considering that many issues can cost thousands, or even tens of thousands of dollars, to rectify, title insurance can easily pay for itself when problems arise. For one of our clients, a survey to subdivide their property revealed encroachments on three sides, and their total claim was $51,000 - a hefty fee to be paying out of pocket, but First Title covered it.
Whether you are about to purchase land or have already settled, you can purchase title insurance at any point. It’s an easy process to get that extra protection and peace of mind.
Be protected and request cover
for your land purchase.