Stewart Title Insruance vs Survey Report...i am confused

[chase]

When purchasing an existing established home, what is recommended a Stewart Title Insurance or a Survey Report?

I was told if you get a survey report done, it will verify your land boundaries and if you are not encroaching on someone elses property or vice versa, but if you perform this you cant get the stewart title insurance if you discover any issues, because its "after the fact"...

but if you get the stewart title insurance and you are encroaching on someone else's property you are then covered by any legal issues with someone elses property if you happen to be encoraching on their property, only if you have not known about these beforehand....

I am really confused by this...has anyones conveyancer given the same options and what have you done?

 

[Propertunity]

When purchasing an existing established home, what is recommended a Stewart Title Insurance or a Survey Report?

It is not really a matter of Title Insurance or a survey. A survey will tell you about boundaries and encroachments - sure. But title insurance covers you for that + a whole lot more (from their web-site)
* non approved structures which have been built by any previous owner of the property without the required Council permits or which do not comply with those permits (for rural properties this cover is limited to the main residence);
* someone else claiming ownership of a part or all of the land by adverse possession;
* forced removal or relocation of a structure because it encroaches over an easement or on to the neighbour’s property;
* any issue that would have been revealed in an up to date survey report (excluding boundary walls and fences);
* outstanding rates and taxes on the property which the insured is liable for as the current owner of the property.

........ as well as guaranteeing title. Google search "Black v Garnock".

Have a read of this thread: http://www.somersoft.com/forums/showthread.php?p=612410

 

[chase]

Thanks for the info.

sounds like beauracracy to me and waste of money, i thought contracts were supposed to protect vendors and buyers against these sort of things, i tell you next there will be a fee and insurance for exchanging contracts, then a fee and insurance to bid at an auction, then a fee and insurance to view a property....we already have insurance for everything else.

 

[Raja]

Thanks for the info.

sounds like beauracracy to me and waste of money, i thought contracts were supposed to protect vendors and buyers against these sort of things.

If you bought a property which has non approved structures which have been built by any previous owner of the property without the required Council permits or which do not comply with those permits... how would the contract protect you?

Maybe if the contract specifically states that all structures were council approved and not encroaching over an easement or on to the neighbour’s property but this is not usually the case. Therefore this type of insurance may be a good option to protect you just in case.

 

[tez]

I purchased Stewart Title insurance for a number of reasons. One to protect myself as there have been additions on my IP, but also, as my conveyancer put it, there are less searches that are needed when doing the conveyance.

She mentioned that having the title insurance would mean some searches were not needed, saving me approximately $150 - $180. Read the PDS for Stewart Title insurance and it seemed like a good thing.

 

[chase]

thanks propertunity...i have decided to go ahead with it, i guess the cost is not that much in the greater scheme of things, and its better to be covered for these sort of issues.

cheers.