Care should be taken when purchasing your new home, and you should always be diligent in checking on what is contained in the contract as well as do a physical inspection of the property.
However not all matters may be revealed to you when going through the transaction. There may be hidden or unknown risks that exist at the time of the purchase of your home, that may cause you loss or affect your ownership of the property.
Title Insurance is a specialised type of insurance that provides protection to purchasers. It is a supplement to the due diligence aspect of the transaction that solicitors and conveyancers usually carry out when carrying out the transaction. Some of the matters that title insurance cover include:
- Illegal or unapproved building work
- Zoning Non-Compliance
- Non-compliance with a positive and/or restrictive covenant or easement
- Registration gap
- Unpaid rates and taxes
One of the situations where Title Insurance may assist is where the local council has identified an unapproved carport or an unapproved extension to the house, and has ordered the demolition of that improvement or extension. In such a circumstance Title Insurance may indemnify the insured property and pay for the demolition costs and re-construction costs.
At the end of the day, it is about managing risk and making sure you’ve got all matters covered.