If you are set on purchasing a particular property it is wise to take out Title Insurance even before exchange of contracts!
Title Insurance is something you should consider as part of your purchase transaction!
What is Title Insurance? Title insurance is an insurance policy which can cover you for costs arising from matters you do not know or are not disclosed by the Vendor as part of the normal conveyancing procedure.
Illegal Building Works typically include: Works undertaken by a Vendor or any previous owner, Outstanding Notices or Orders affecting the property issued by a Government departments or an encroachment by or onto your property revealed by a current identification survey. These works may include construction of a deck, expansion or conversion of an attic, construction of a pergola, enclosure of balconies or rooms, rear extensions, conversion of a garage into a living space or bedroom, internal renovations of a kitchen, bathroom within a strata complex.
What can trigger an Outstanding Notice or Order? Lack of final occupation certificate for renovations completed, fire order for a strata complex; swimming pool non-compliance, complaint from a neighbour or tenant relating to an illegal improvement or structure, or the required inspections by Council if you lodge a Development Application.
Summary of Key Features of Title Insurance:-
• One off premium – based on the purchase price
• No excess in the event of a claim
• No restriction on the number of claims which you can make
• Coverage up to the value of the purchase price plus 200% inflation increase* (*dependant on reason for claim)
• Policy coverage is effective from date of settlement
• Insurer will deal direct with the Authority on your behalf to reach a resolution for the parties involved.
• Insurer will cover your legal fees incurred to defend any claim
What you need to know: By electing to purchase a Title Insurance policy you are agreeing to not undertake any independent search of council records or other Authority which is likely to trigger an inspection of the property and potentially a work order or notice.
Talk to BTF Lawyers and we will provide you with further advice as to Title Insurance.