What is title insurance?
August 01, 2016
Purchasers often think the property is theirs once settlement is completed. But this is not the case.
Between settlement and the time it takes for the property’s title to be registered in the buyer’s name, there is a period known as the ‘registration gap’.
In the past, some purchasers have been caught out during this period – external parties have placed a caveat on the property; transfer documents have been lost, and other unforeseen obstacles.
LJ Hooker Settlements supports title insurance as a way for buyers to protect themselves during unforeseen issues during the ownership transfer. Title insurance covers against actual loss incurred by the insured as a result of any unknown title defect or other risk covered in the policy as at the date of settlement.
The insured is protected against actual loss incurred as a result of unknown risks or defects which existed prior to or at the date of settlement. Some of these covered risks include loss caused by:
- Illegal/unapproved building work;
- Boundary issues
- Fraud and forgery, including identity theft.
- Unpaid rates and taxes resulting in a charge on the land.
For a one small premium paid, lasting the life of ownership, title insurance is a great solution for this type of event and many others.
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