Forrestfield 
When purchasing a property, the seller of the property is legally obligated to disclose all material facts to the buyer about the property.
This information is collected by the selling agent and provided to interested buyers. Important facts may also be outlined in the offer and acceptance contract under special conditions. This process helps reduce the risk of unknown defects associated with the property. However, even with a diligent agent and an honest seller, there may be situations where the seller is unaware of certain material facts about the property which may incur costs during future ownership. When purchasing a property, Owner’s title insurance is worth considering, to provide peace of mind throughout your ownership experience.
Purchasers are offered this insurance as an option when they sign their settlement documents with the conveyancer. The average cost for title insurance starts at around $510.00 with the final amount depending on the property’s value. Stewart’s Title is the provider of this insurance in WA.
What is covered by Title Insurance?
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Unapproved Building Works – Coverage for the repair or demolition of any unknown unapproved building works, such as decks, pergolas, granny flats, or carports, if your local council issues an order to address them.
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Incorrect Boundaries – Coverage for boundary issues, such as fences built prior to your ownership that extend onto your land and hinder your access to part of your property.
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Planning and Zoning – Coverage if you are unable to use your land as your home due to it not being zoned for residential use, and this information was not disclosed to you prior to settlement.
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Errors in Property Searches and Inquiries – Coverage for losses resulting from errors in certain public property searches conducted when you purchased your land.
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Fraud – Coverage against fraud that might result in your land being sold to another party or a fraudulent mortgage being taken out against your property.
Check out this real case where Title Insurance came into action:
Illegal Conversion of a Storeroom to a Bedroom
The purchasers secured a property in regional Western Australia, the property was marketed as a four-bedroom home. When the new owners applied for a building license to add an ensuite bathroom to the main bedroom, the local shire informed them that the main bedroom had only been approved for use as a storeroom. A previous owner had converted the room into a bedroom without the shire’s approval. The shire refused to assess the application for the ensuite bathroom until the bedroom was upgraded to meet the higher building standards applicable to a bedroom.
The new owners were taken aback by this discovery, as they had obtained a structural engineer’s report before purchasing the property, which indicated no concerns, and there was no material fact noted by the previous sellers.
Title insurance covered all costs associated with upgrading the bedroom to comply with building standards, including erecting wall frames, waterproofing floors, and raising ceiling heights. This was a resolution that would have been very costly without the insurance.
On your next property purchase, you’ll have a solid understanding of what Title Insurance covers, be sure to discuss it further with your settlement agent.
