What Is Title Insurance and Do You Need It? Ask Your Property Conveyancing Firm in North West Sydney, South West Sydney and West Sydney
At All Districts Conveyancing, in addition to providing full property conveyancing services in the West Sydney area, we also offer to help our clients set up title insurance. Recently, title insurance has been becoming a more popular option for individuals purchasing houses or other property. However, despite this growing ubiquity, many of our clients at All Districts Conveyancing are still not entirely familiar with what title insurance is or what it covers.
What Is Title Insurance?
When you engage our property conveyancing services in North West Sydney (or elsewhere), you can ask for guidance on whether or not you need title insurance. However, going into that conversation, it’s a good idea to have a basic idea of the purpose of title insurance.
Essentially, title insurance protects you, the real estate buyer, from losses attributed to ‘known’ and ‘unknown’ risks as they pertain to your property. Throughout the conveyancing process, All Districts Conveyancing will work to identify property defects and other factors that could pose a risk to you and your finances. A known risk might be a structure that the current owner built on his or her property illegally.
These problems—particularly the ones discovered during a property inspection—are things that we will work to get cleared up for you before the property settlement occurs. Often, we can help you make a contractual requirement that has the seller fix known defects to observe his or her contractual obligations. Alternatively, title defects discovered during an inspection might void your contractual obligation to purchase the property.
However, every property likely has future risks that cannot be identified during this process. These unknown risks are often protected by title insurance and can shield you from financial losses in the future. Several items often covered by title insurance include illegal building works, encroachments or property boundary problems, zoning issues and any instances of fraud or forgery. For example, if you purchase a property in part because it has a large fenced back yard for your dog to run around, only to learn later than the fence is over the property line and needs to be torn down, title insurance would likely cover that expense.
Do I Need Title Insurance? (And How Can My Property Conveyancing Firm in West Sydney Help Me Find Coverage?)
When it comes time to finalise the purchase of a property, you should obviously have a frank conversation with your conveyancer to find out whether title insurance is a good idea for you. However, in most cases, your conveyancer will recommend that you seek this type of insurance coverage. Buying property is a hefty investment, and unfortunately, there is no way to tell if the vendor and their conveyancer have been completely honest in disclosing any title defects. To avoid potential financial disaster somewhere down the line, title insurance is an essential protection.
At All Districts Conveyancing, we are happy to help you set up title insurance as part of our property conveyancing services in South West Sydney, North West Sydney or anywhere in the region. Call us today to learn more about this type of insurance coverage, or to find out about the other services we have to offer. We can be reached on 1300 139 360.