Title Insurance

[zaligirl]

Hi guys,

Is it recommended to obtain title insurance or a council building certificate?
We will also be signing contracts on the 1st of July and we have been given permission to have early access to the property to renovate. What type of insurance is recommended to access the property?

Ta

 

[landlubber]

Title insurance is to protect you if you think there is any chance of somebody else making a claim over the title in the future. So.... If you're buying the property from (say) a mortgagee in possession OR a liquidator of any description OR perhaps a deceased estate OR ANYBODY other than the actual real owner you'd definitely get it. But, if you're buying off "Mr & Mrs Average" who've lived there for 20 years etc etc it's probably not necessary. Like many "products" this insurance tends to be promoted by brokers and solicitors who (maybe ) earn a commission on the sale? Get a copy of a policy and have a read. Google on "title insurance". Most important to realise is this insurance DOES NOT cover you against common problems like mis-aligned fences, buildings over the boundary line etc which a trap for young players. Only a survey will solve that one. Educate yourself, read a policy and then ask a solicitor who is NOT selling the insurance to you !!
LL

 

[Qinau]

Hi all,

Just digging up a slightly older thread, searching didn't reveal much in terms of title insurance which my conveyancer has suggested.

This is the cover, about $360 for a property in Melb less than 500k
http://www.stewarttitlelimited.com.au/ResidentialPurchaser.html

Do many of the seasoned people here take this cover out? It seems a small amount in the overall scheme of things but is it just a waste? I've purchased a new house rather than an existing.

Any thoughts appreciated. I hadn't taken this cost into account, actually I didn't know it existed.

Cheers

 

[Raddles]

Hi there
if you had old system title it might be worth taking out this insurance. Old system title is the type where there is a thread of documents which evidence the title.

If the property is torrens title, I really can't see the benefit as there is meant to be indefeasibility of title once registered.

Even if there was a prospect of someone challenging the title - I don't see that this insurance will cover all aspects - so perhaps better to just make sure you do the research on the property and find any faults and frame your offer accordingly.
thanks

 

[boomtown]

Or use a solicitor and sue the **** off them if they fail to convey title properly.

 

[Qinau]

Thanks for the replies, I think I'm steering away from this cover.

I am using a solicitor so presumably they will come across any issues, as Boomtown so eloquently puts it I would have some recourse there if they failed to do what they are being paid for

Cheers