Australia has one of the best land registration systems in the world, however it does not protect buyers against all potential risks. Something as simple as a fault in a property document can result in a defect on the title to your land.

Fraud, unregistered easements and rights of way, encroachments on land and loss sustained due to forced removal of an illegal structure, are just a few of the other risks that can affect a buyer’s interest in a property, especially when excess costs and legal fees are required to rectify these issues.

Aside from providing the purchaser with security in the title to the land, and provision for legal fees incurred to defend against the aforementioned problems, Title Insurance can also facilitate a smoother settlement by eliminating the risks and issues as they arise, and providing 'gap' coverage for the period between settlement and registration.

Low Cost Conveyancing Services, while not affiliated with any specific Title Insurance providers, can facilitate an application for this insurance product and would advise its clients to do so in order to minimise risk.

The following is a true story of a client that found herself in a nightmare that could have been avoided.

“One week after purchasing a property, before the bank had submitted the conveyancing paperwork to the Titles Office to complete the transfer of Title into the client’s name, a disgruntled ex-partner made a claim against the seller and lodged a caveat over the property. When the lender lodged the paperwork, the Titles Office rejected it. Even though the client has paid for the house, she doesn’t own it. The bottom line is that it could cost her tens of thousands of Dollars to fight for her home in court.”

“A client called us approximately six months after settlement and advised that the back half of his house was sinking into the ground. The seller had failed to disclose that this section of the house was actually an illegal structure built without a permit, which the council now wants to pull down. The estimated loss is over $60,000.”

Title Insurance would have covered the ‘legal costs’ in both of these cases. And, the properties could have been assessed for compensation for loss and/or rectification of the situation, especially in the demolition and re-building of the sinking house. Low Cost Conveyancing Services can offer advice in the area of Title Insurance.