Title Insurance - Can you buy it after settlement?
You might be thinking of taking out a title insurance
policy to gain cover for a number of property ownership risks
including illegally built structures, encroaching structures or incorrect boundary fences, and miscalculated rates or land taxes.
But one of the most common questions we hear is this: “Can I buy title insurance after settlement?”
The answer is absolutely – you can take out a title insurance policy at any time before or after the property settlement, and your policy will apply from settlement for as long as you own your property and have paid for the policy (including your beneficiaries) until you sell it to someone else.
You can request title insurance cover at any time. In fact, there’s nothing stopping you from taking out a policy for a property that you’ve already owned for many years if you wish to. Whether you’re about to buy your very first property, or adding your seventh investment property to your portfolio, taking out title insurance in Australia can save you a great deal of stress and cost if the following issues arise without your prior knowledge:
• Illegal structures
• Incorrect boundaries
• Encroaching structures
• Planning and zoning laws that stop you from using your property
• Identity theft and fraud relating to your property, or
• Wrongly calculated rates and land tax.
What’s required to take a title insurance policy out?
It’s incredibly easy and cost-effective to take out a title insurance policy with First Title Insurance. There’s just one premium to pay, and it’s surprisingly affordable
If you already own the property, you’ll need to provide a rates notice, a title search and any documentation relating to potential known risks. If you’re in the process of buying, then we’ll need the details page of your Contract of Sale, a title search and any documentation relating to potential known risks. If you’re ready to get started, you can request cover now
. Our team is always here to help
if you need any assistance requesting cover or getting a quote.
What’s the ideal option – to get cover before or after settlement?
This is really up to you. If you’d like cover from the moment you own the property, then it’s a good idea to take out title insurance before you purchase your property – your policy will be activated as soon as you take ownership and pay for your policy. This could provide cover for any issues that arise during or as a result of property settlement, such as defective document registration, or errors in rate or land tax calculations. But property ownership issues can also crop up at any stage of property ownership: for example, a neighbour of many years could potentially knock on the door after finding out that your shared fence is aligned incorrectly. So the earlier you arrange this type of cover with First Title Insurance, the longer you can have peace of mind that you’re covered.