Should You Get Title Insurance Before You Buy a Property?

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Reasons To Use Real Estate Attorneys When buying a property, it is often tempting to save money along the way. One option is to do the conveyancing work yourself to save on legal fees. Unfortunately, this has backfired on many purchasers and sellers, so when considering this route it pays to be informed. The information provided to you here is the different ways a real estate attorney works for you during a property transaction. If you are looking for an explanation of the contract process and examples of ways the contract may go wrong, then look no further. A real estate attorney protects your interests when things go wrong, so if you are considering a do-it-your property transaction, be very aware of the negatives of that decision before you make it.



In everyday life, insurance is so important for many different reasons. Whenever you consider making a significant purchase, you may also want to consider insurance as well, so you are not liable for anything untoward should it come to the surface. With this in mind, have you thought about buying title insurance if you are about to purchase your first property? Why is this a good idea, and why do you have to be careful when you take this route?

Beware of the Unknown

Several nationwide companies offer title insurance to protect homebuyers against any costs that could arise due to undisclosed or unknown factors. Typically, the seller is required to disclose any unusual issues that may have an impact on a new buyer and that could, in one way or another, affect their purchase decision. However, if they don't disclose for any reason, the title insurance would kick in and cover those unexpected costs.

Encroachments and Easements

Sometimes, a property may be subject to an encroachment that is not readily apparent. For example, a neighbouring property owner may have access rights even though they may not be obvious and may not have recently exercised such a right.

Outstanding Orders

At other times, an outstanding notice or order may have been given to the current or former owner of the property, which remains unsatisfied. For example, the swimming pool may be non-compliant, and remember that there were some considerable changes in the law here in recent years. Perhaps some renovations were completed, and the relevant authority has not yet signed off with the occupation certificate. Down the road, these issues could generate significant problems or costs for a new owner, even if the old owner was simply unaware of the detail.

Insurance Details

There are typically no restrictions on the number of claims you can make with title insurance. The policy will come into effect on the date of settlement and cover any legal fees involved in defence and direct costs that would result.

Known Risks

Just remember, if you buy a title insurance policy, you cannot subsequently conduct an independent search of authority records. If you do and discover something strange, this would be classified as a known risk. In this case, the insurance company might not extend coverage or may want to limit their exposure.

Further Advice

If you have any questions about title insurance, searches and other matters, always engage the services of an experienced conveyancer. They'll answer all your queries and help you to get the insurance if needed.

For more information on property conveyancing, contact a professional near you.

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