It took you years to save up enough money to buy a property, so of course, you’re more than excited to finally seal the deal. But now you’re also starting to realise that investing in property doesn’t just end with making the purchase. You also need to find ways to make sure that your property—and your rights—are protected.
Have you ever come across title insurance in Australia? If not, you might be wondering what it is and why it matters. Here’s everything you need to know to understand its importance and how it can protect your property investment.
- Title insurance is a type of insurance that’s designed to protect both home buyers and lenders from financial losses in the instance that defects are identified in a title after a title search. This search is done to confirm the rightful owner of a property and determine if there are other people claiming the property. Some of the most common problems that make a title “dirty” include liens from mortgage loans, back taxes, conflicting wills, encumbrances, and home equity lines of credit (HELOCs).
- You have two options for title insurance. A lender’s title insurance is usually required by the lender for all of its borrowers as a form of protection for the lender in the instance that the seller is not able to transfer the title of ownership rights legally. This type of insurance is designed to protect only the lender from losses. An owner’s title insurance, on the other hand, is designed for homeowners. When you gain full ownership of your property, you will be held liable for any damages and issues related to its title. So in the instance that a claim comes up, you will also be at a higher risk for losses. An owner’s title insurance protects you from these losses, especially if you’re planning to stay in the property for a long time.
- Whatever type of title insurance you choose to purchase, it’s very important to invest in one to make sure that you are protected from losses in case you encounter any issues with your property title. Title insurance is also a one-time investment that lasts as long as you own the property.
- Make sure that you do your due diligence first when investing in title insurance. This should include a thorough building and pest inspection and a full assessment of the property to make sure that you don’t encounter problems after sealing the deal.
At the end of the day, it’s very important to protect your property investment at all costs, and title insurance is one of the best ways to do it. Whether you’re buying property for your own use or for a business, having title insurance gives you some peace of mind knowing that you won’t have to cover the costs of fixing any issues with your property.
To get started on your journey towards getting title insurance, get in touch with our team. We’d be more than glad to answer your questions and offer you the best options to cater to your needs.
