Browse Forums Home Finance 1 Feb 17, 2015 11:25 am Hey guys I am just reading my conveyancing contract and there is two additional options I can get: Title Insurance and Caveat The title insurance is a one off payment and covers a premium of a property of up to $500k the cost of the insurance for a $500k property is $363, my property is $340k so it will cost less Also the other option is to get a Caveat It says the Caveat will protect my interest as the purchaser of the property and will prevent any dealings with the property without my approval ($110) Are these worth it? Still have to find out from the conveyancer if the title insurance is an optional thing or it mandatory with the contract I am a first home buyer so all this is new Can someone expain this in simple terms for me please Re: Title Insurance and Caveat worth it? 2Feb 17, 2015 11:33 am I'd be seeking advice from your conveyancer about both - I doubt they will recommend the Caveat as it will cost money for very little benefit- any dealings would have to be undone before you buy it anyway (before a lender would take a mortgage) and worst case if they can't be then you get your deposit back and walk. Not ideal but I wonder how often this is ever an issue - 0.5% if the time? Title insurance can be more beneficial, again, get the solicitor to advise, some lenders will take this out for you too. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Title Insurance and Caveat worth it? 4Feb 17, 2015 12:28 pm Conveyancer, sorry! Ask them too Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Title Insurance and Caveat worth it? 5Feb 18, 2015 8:19 pm Hi Drekko, Title insurance is definitely worth it. I just bought another existing property (investment), & there has been extensive renovations including an extension consisting of a rear deck & awning. All looks great, & passed the building inspection, however the previous owner didn't get DA approval from council to install these extension changes. If council decided there was a problem & I needed to remove or change these renovations or extension, I would have to pay for everything if I didn't have title insurance - even though it was done prior to me buying the property & the property passed the building inspection. This is just my circumstances as an example, so I'd also encourage you to seek a conveyancers advice in your particular situation Sent using Tapatalk Re: Title Insurance and Caveat worth it? 6Feb 19, 2015 11:45 am Well I just asked my conveyancer. She was not much help. She just told me its entirely up to me Well I dont know i I need it or not thats the problem here My situation is the land i bought is brand new and its still in development stages in a new estate I have already signed up with builder and they will commence building once the land is titled When I asked my builder about the survey of the land ( which is required in the title insurance I think ) they are going to do this with the soil test Also it has no previous owners obviously Re: Title Insurance and Caveat worth it? 7Feb 19, 2015 12:19 pm Sounds like it's not as clear-cut as expected. What would your conveyancer say if the title insurance was to be applicable to the land, to ensure that any unknown problems in the land (if they arise in future) would be insured..? I'm not sure if this would be the case, but it may be worth asking...good luck with it. Sent using Tapatalk Re: Title Insurance and Caveat worth it? 8May 20, 2016 7:37 am becjarrettdalton I'd be seeking advice from your conveyancer about both - I doubt they will recommend the Caveat as it will cost money for very little benefit- any dealings would have to be undone before you buy it anyway (before a lender would take a mortgage) and worst case if they can't be then you get your deposit back and walk. Not ideal but I wonder how often this is ever an issue - 0.5% if the time? Title insurance can be more beneficial, again, get the solicitor to advise, some lenders will take this out for you too. We are currently considering whether to lodge a caveat or take title insurance out for the block we are purchasing. In the post quoted above, can anyone explain what is meant by "any dealings would have to be undone before you buy it anyway (before a lender would take a mortgage)"? Thanks for any assistance. Re: Title Insurance and Caveat worth it? 9May 20, 2016 1:47 pm So what I meant in that regard is if there is a caveat or any encumbrance (mortgage to someone else etc) they would have to be removed before the bank would issue you your mortgage and settle on your purchase. Banks want "clear title", that is, nothing on there that would prohibit them from selling if they need to - except their own mortgage. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Title Insurance and Caveat worth it? 11May 20, 2016 5:54 pm That happened to me too, conveyancer recommended Title Insurance, but wouldn't give me advice on whether I should buy it or not. I ended up going with it, what's $300 in light of my entire build cost? But I did find it a bit annoying, I felt like I was buying protection in case my conveyancer did a bad job.. Oo; Re: Title Insurance and Caveat worth it? 12May 21, 2016 12:07 pm dont worry about the caveat basically means nobody can sell the land without your approval the finance company will have lodged their own caveat until you pay the loan out title insurance is more tricky, i decided not to bother as it seems a new fad never heard of it 10 years ago Flamingo Give me a call and I will do my best to talk you through it. For those who would like an answer, Subject to seeing your actual DA condition, I think you are… 1 4572 i would not be signing anything on the day read your contract about when builder submits final invoice generally, have to meet builder within 7 days of receiving final… 1 4735 In fairness nobody gave a crap about the ACCC and the gag clauses continued in the pro forma templates of a few other builders after the ACCC took on Wisdom, and more… 19 73463 |