Hi All,
I have had my conveyancer try and sell me title insurance.
As far as I can tell, it insurers all the things that you employ the conveyancer to sort out before settlement.
From what I can see it would be useful to someone who is settling the property themselves.
I think most of what the policy covers should be covered by the conveyancers professional insurance.
Is my thinking correct on this, or do you have no recourse against your conveyancer if you have issues with hidden charges post settlement?
Does anyone else use title insurance?
Cheers,
Ross
I got it when I purchased my PPOR last year. I was pretty naive, and sus on it, but I directly asked my conveyancer and she told me that she doesn't get any commission or kick backs from using it, so given she had nothing to gain, I got it.
She said the other options were to get a surveyor to check boundaries, and something else done, costing $1200 from memory, or to buy the title insurance which was… I forgot, $200 maybe, I can't remember. Either way, I went with it as the cheaper option as I figured my boundaries were probably right. Units next door, gotto have imagined they would have built to the right boundary, and as I have a semi, the fence runs along the divide in houses on other side.
That's my 2 bobs worth, others more knowledgeable would be able to explain it better than, 'it was good, cheap option at the time'.
What if the property you are buying is 'stolen'?
Or if a creditor of the seller where to put a writ on title after you exchange but before you settle such as in Black v Garnot? You could hand over the money and then not be able to register the title!
And, why are you using a conveyancer and not a lawyer???
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
excuse my ignorance but,
I thought that was the purpose of a conveyancer?
To manage the transaction, do all the necessary searches and ensure that you have the title registered in your name or trust and ensure all debts through the vendor are cleared before passing on any funds to them?
I thought it was unnecessary to utilize the services of a lawyer?
Please enlighten me.
What are the costs compared to using a conveyancer?
Do you have any more power of recourse if it is done by a conveyancer or would you still need the title insurance anyway?
Cheers,
Ross
Sorry last line should read:
Do you have any more power of recourse if it is done by a lawyer or would you still need the title insurance anyway?
Hi Ross,
You don’t need title insurance, but it is good to have if something goes wrong. Do a google on “black v Garnot” . No way to protect against this sort of thing other than lodging a caveat on exchange.
Conveyancers really are just for ‘conveying’ the title. lawyers can do this but also have more extensive legal training in relation to property law and other areas of property.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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