Buying a property or a piece of real estate is mostly a once in a lifetime activity. Since it involves your hard-earned money and life savings, you should be aware of the risks that can come with the buying of property/real estate. The risks can, however, be managed by obtaining title insurance.
What is title insurance?
You obtain a ‘title’ for the property as soon as you purchase it. The previous owner hands over the ownership to you after you have completed all the formalities. This is completed through the registration of a document known as ‘transfer deed’. The main aim of providing title insurance to home buyers is to provide compensation for the loss or claim of the purchased property. After completing the property purchase transaction, the settlement agents in Mandurah order a title insurance policy to provide protection to the buyer against various risks involved in real estate transactions.
What are the risks covered by title insurance?
A title insurance policy covers a wide range of risks. These are:
1. Illegal building work: If the property has been built by the former owner of the property without acquiring the required permission from the governing body or the property is built without complying with the existent permits. In such cases, the Local Authority may implement compulsory action if your property is declared to be a non-approved structure.
2. Registration gap: Title insurance provides protection if dealing is lodged by someone else during the registration gap that will prevent your interest from getting recorded or registered.
3. Survey/boundary defects: In some circumstances, you may need to relocate or remove your structure if it intrudes on to your neighbour’s property. Title insurance covers you if any recent survey report reveals an adverse matter affecting the title of your property.
4. Planning & title defects: Sometimes your property may be charged with non-compliance with the current planning and zoning laws, lack of legal access, access orders or unregistered easements. Title insurance protects from such risk. You can avail any reputed real estate settlement services to get your property’s title insured.
5. Outstanding rates & taxes: Title insurance is a useful protection tool if there are existing unpaid taxes and rates on the property which you are liable to pay as the present owner.
Conclusion: The above-mentioned risks can be duly addressed by buying title insurance. All buyers are recommended to avail Title insurance, however, you must know that the role of conveyancers or settlement agents in Mandurah can never be replaced. The Title Insurance when combined with expert conveyancing guidance, gives you an all-inclusive protection against risks that are inevitable that may crop up during property transferral, affecting the legal ownership of your property. For the best conveyancing services and guidance to acquire ownership rights to your property, reach us at (08) 9586 9992.