As a licensed conveyancer in New South Wales, one of the most common questions I’m asked by buyers is:
“Do I really need title insurance if my conveyancer is already checking everything?”
It’s a fair question, and an important one.
Buying property is often the largest financial investment you will ever make. While careful conveyancing ensures the legal transfer of ownership, title insurance provides an additional layer of protection against risks that may not be discoverable, even with the most thorough searches.
What Is Title Insurance?
Title insurance is a one‑off insurance policy that protects property owners against certain hidden title defects and ownership issues that may exist at the time of purchase.
Unlike most insurance policies, title insurance:
- Is paid once only;
- Covers you for as long as you own the property; and
- Provides protection against financial loss and legal costs.
These issues are often historical in nature and may not appear in standard searches conducted during a conveyance.
What can Title Insurance protect you from?
Title insurance can protect property owners against a range of risks, including:
- Unknown fraud or forgery in the property’s ownership history;
- Errors in the public record or title documents;
- Unapproved building works completed by previous owners;
- Boundary or encroachment issues;
- Undisclosed or incorrect easements and rights of way; and
- Outstanding rates, taxes, or charges that legally attach to the land.
Many of these issues only come to light after settlement. Often when you try to sell, renovate, or refinance.
How Is Title Insurance different from conveyancing?
Conveyancing is essential and legally required when buying or selling property. As your conveyancer, my role is to:
- Conduct searches;
- Review the contract;
- Identify known risks; and
- Ensure compliance with NSW property law.
However, some risks are simply not discoverable through searches or inspections. Title insurance does not replace conveyancing, it complements it.
Think of it as peace of mind for the unknown.
Why we recommend Stewart Title for Title Insurance
There are a number of title insurers in Australia, but Stewart Title is widely trusted and respected in the property industry.
Here’s why many NSW conveyancers, including myself, recommend Stewart Title:
✅ One‑Off Premium, Lifetime Cover
There are no ongoing payments. You pay once at settlement and are covered for as long as you own the property.
✅ Coverage for Existing Structures
Stewart Title policies can cover losses arising from unapproved or non‑compliant structures, which is particularly valuable in older homes or renovated properties.
✅ Legal Costs Included
If a covered issue arises, Stewart Title can cover legal fees associated with defending your ownership or resolving the issue.
✅ Reputable Global Experience
Stewart Title has extensive international experience and understands complex title risks, giving buyers confidence that claims will be handled professionally.
✅ Supports both owners and lenders
Policies can protect owner‑occupiers, investors, and lenders, making them suitable for a wide range of property transactions.
Is Title Insurance mandatory in NSW?
No, title insurance is not mandatory in New South Wales. However, that doesn’t mean it’s unnecessary.
In my experience, clients who choose title insurance often do so because:
- They want certainty and long‑term protection;
- The property has had previous renovations;
- They are investing or buying at auction; and
- They want protection beyond settlement day.
Considering the scale of a property purchase, the cost of title insurance is relatively modest compared to the potential risks it protects against.
Should you take out Title Insurance?
Every property and every buyer is different. Title insurance may not be essential in every transaction, but it is worth serious consideration, particularly where risks cannot be eliminated through standard searches.
As your conveyancer, our role is to ensure you understand both the legal position and the practical risks so you can make an informed decision.
If you’d like more information about Stewart Title Insurance or want to know whether it’s suitable for your property purchase, we are always happy to discuss it with you as part of your conveyancing process.