Unseen Risks When Home Buying
When you buy a property there is a risk that what you thought you were buying could be misrepresented. There could be illegal or unapproved structures or disputed or incorrect boundaries. These things should have been disclosed but arguing later could be expensive.
This risk is relevant whether a first home buyer, property investor or just buying a home.
A way to protect against these risks and the potential loss they might cause is through Title Insurance.
The most common risks covered are:
- Fraud and forgery
- Unapproved structures
- Encroachments (building or fence lines over boundaries)
- Illegal or unapproved building work
- Boundary and survey problems
- Title problems
- Miscalculated risks
For some examples of Case studies click here : Case Studies
Protecting yourself as the Home Buyer or Investor
As the purchaser you can take out title insurance to protect your interests.
The cost of title insurance varies with the value of the property. As an example for a property of $500,000 title insurance is around $360.00
The insurance is a one off fee and lasts for as long as you remain owner of the property.
Your lender can also take out Title Insurance protect their interest. Some lenders will pass on this cost of the insurance to you. Be aware when they take out the insurance this is largely for the lenders benefit and not yours. It may not be of help if you need to make a claim.
For further information the following are two companies that offer these products in Australia: