An important component for a successful loan
Over the past year it has been noticed that lenders are incorporating a Title Insurance cost into their loan documentation.
What is title Insurance?
Title Insurance is a specialized type of insurance which provides protection to home buyers and existing home owners of residential property against certain unknown and any hidden risks which may exist at time of purchase.
Some of the risks covered include :-
- Illegal building works: illegal structures may have been constructed without the required Council permits or do not comply with the permits.
- Boundary defects: any adverse problems that would have been revealed in an up-to-date survey report.
- Registration gap: someone else lodges a dealing i.e. caveat, which prevents your interest from being registered.
- Fraud, Forgery and Identity Theft: results in you being denied your ownership of the land.
- Planning & Title defects: loss through non-compliance with zoning and development laws, unregistered easements and covenants, lack of legal access and any defects in title to the land which you are unaware of at the time of purchase.
- Outstanding rates and taxes: any outstanding rates and taxes which you are now liable for as you are the current owner.
Title Insurance is a wise one-time premium that provides protection forever.