Property Title Insurance

[kermey]

Hey all,

Just wondering what people thoughts are on taking out Property Title Insurance when buying a house in Australia.
When I bought my first place there was no such thing in Aus but now im being asked by my settlement agent if I would like to take it out or not.

Im not full bottle on this but I thought this was allready part of your settlement agents job to make sure the title is clear before moving on to settlement?

Any advice or experince any one has let me know.

Cheers.

[Winter XR8]

Im not too sure if it's needed or not mate but I just signed my paperwork for a house and it had that on it. I just chose yes as it wasn't bugger all for it.

[Yellow_Festiva]

Is that what they call a 'caveat'? Last place I got the solicitor did this and the selling agent called me and asked why I did it (I had nfi about it at the time). From what I understand it stops anything happening to the property between exchange and settlement without all interested parties being notified, ie, me the buyer. Turns out seller was trying to refinance the place last minute, would have caused issues come settlement if their end wasn't ready. Don't know if it cost anything extra but my solicitor told me it was common practice.

Hope that has helped you?

[nuthin' fancy]

Sounds like being asked to pay for an extended waranty. I agree that it is your legals rep's job to make sure the title is correct in the first place.

In a circumstance where your lender is doing a 'fast refinance', they do charge title insurance fee but I can't see the point in a purchase.

Ask the seller (of the insurance) how much they make out of it.