Title Insurance. Image – Canva.
  • Risks relating to your property may exist without you knowing
  • Title insurance may protect from unknown risks
  • Do your research if you think you need title insurance

Buying property is exciting, but it is also fraught with risk.

Title insurance is a simple policy designed to protect you from title-related ‘defects’. Such defects may threaten your right to occupy and use your property.

Even though your real estate agent, lawyer or settlement agent may have acted diligently on your behalf in relation to the purchase of your property, there can be some unknown risks that you should seek protection from.

What does Title Insurance cover?

Title insurance provides cover in respect of loss arising from:

  1. Illegal/unapproved building works: title insurance provides cover for any structures or renovations built by previous owners without council approval;
  2. Survey risks: title insurance provides cover for boundary discrepancies and encroachments, resulting in the forced removal of structures or loss or prevention of access to your land; or
  3. Fraud or forgery: title insurance provides cover for fraud (at the time of purchase or anytime during ownership).

What does it NOT cover?

Title insurance does not cover:

  1. Items covered by home and contents insurance policy (e.g. property damage resulting from flood, fire, storm, pests and vandalism);
  2. Risks which you create, allow or agree to; and
  3. Risks that do not cause you a loss.

What could happen?

In the worst case, you may lose legal ownership of your property because of a fraudulent sale.

Alternatively, you may suffer financial loss as a result of the council removing an illegal structure built by the previous owner or loss of land due to survey errors, boundary defects or non-compliance with zoning obligations or development laws.

Before you decide if title insurance is right for you, please do your research.


Before making any decisions, please do your own independent research, taking into account your own situation. This article does not purport to provide financial or investment advice. See our Terms of Use.

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