Buyers: Has a lawyer ever given you a $100,000.00 insurance policy to protect you against legal risks after you settle?
Sellers: Has a lawyer ever helped you get a policy to cover a specific defect that you and your agent are not obliged to disclose to a buyer?
As part of our conveyancing package for a purchaser we give you $100,000.00 conveyancing insurance which last for as long as you own the property. If you want greater cover, we can help you arrange this.
We do this because we understand that despite the best due diligence by you and us and despite our careful and prudent conveyancing, issues can arise after you settle that could be expensive to fix up.
A conveyancing insurance policy insures you against a variety of legal risks that may not be able to be identified before you settle. We give it to you because it also insures us and your mortgagee.
This video will explain how conveyancing insurance works.
The policy is issued by Lloyds of London and covers you without the need to prove fault.
Essentially, the insurer steps in at its cost to resolve issues such as:
· action by the Council for lack of a building permit or code compliance certificate;
· action by the neighbour because a structure is wrongly placed over the boundary;
· you discover that the access to your property is across neighbouring land and your neighbour objects.
· under the new Land Transfer Act, a Court orders that because of fraud on the part of the vendor, it becomes “just and equitable” that the transfer be reversed and the land transferred back to the real owner – or you are forced to defend an action by the real owner to have the land transferred back.
All of these are matters you may not discover before you settle.
If you/we do discover an issue before settlement we can also help you get cover for the specific defect.
Feel free to talk to us about conveyancing insurance.