(02) 9555 1350
On even limited introspection anyone can figure out what Title Insurance is likely to be. Its a policy that insures you against costs arising out of vendor folly after the conveyancing process is completed. Vendors, fearing termination of contracts, sometimes hide major issues like illegal constructions, lack of council approvals, fixed-term leases, encroachments or easements. The list is not exhaustive by a long margin.
Title Insurance
For a one-off premium, you are guarded by an insurance company against all such costs which can arise in the given circumstances. For instance, if the property you are being sold already has existing tenants with fixed leases (due to expire only 6 months hence), you will have to rent out a property for 6 months’ duration. This is a tangible cost for which the Title Insurance neatly covers you.
Keep claiming for no extra fee
The cover does not seek any extra cost in the event of a claim and allows you to make as many claims as need be. The insurer pays for any legal costs that you have to fork out while defending the claim in the court. Title Insurance can cover you for an inflated 200% of the purchase price if you have done your bit of diligence while buying it.
Unethical practice by vendors
In times such as these, time-on-market is decreasing across capital cities. When properties keep vanishing so fast, we can’t help but visualize Contract of Sales being signed every few minutes somewhere or the other. Are all deals going to be fair? NO. Is the Title Insurance not an imperative then?
If you have spotted a nice bargain buy for yourself, you may be wondering why the price is so low. You somehow give in to the temptation of buying only to realise that their was an easement on the property or that it encroached on your neighbour’s property- something that the vendor had suitably hidden.
Will you still think twice about a Title Insurance?
Leave a Reply