Title Insurance

There is no set list of what we can insure, but the known risk needs to impact the ownership and/or use of the property. Some common risks we insure include:

• Access issues (pedestrian and/or vehicular)
• Actual or potential breaches of easements, covenants and rights or restrictions contained in title deeds/documents
• Lack of necessary rights to use or access the property, including for services
• General title defects (actual or potential), including missing title documents/deeds, inability to verify the chain of title, encumbrances and charges
• Breaches of or unfulfilled planning obligations/conditions
• Zoning issues/defects
• Actual or potential third-party rights affecting title to and/or use of the property
• No search / search validation
• General issues regarding capacity and/or authority
• Actual or potential restrictions on transferability of real estate
• ‘Limited as to parcels’ risks
• Unapproved/illegal building works
• Issues with (or missing) building permits / approved documents, planning permits, occupancy permits and/or building classification certificates
• Boundary issues/encroachments (actual or potential)
• Lease forfeiture risks (registered leases)
• Uncertainty regarding whether third-party consents are required/relevant under title or associated documents and/or inability to obtain such consents, where required
• Adverse possession
• Mining/mineral reservations
• Limited title/qualified title
• Defects in title plans
• Discrepancies between title documents
• Lender specific coverages related to the issues outlined above
• Cross-lease issues

Our Known Risk cover is typically purchased when commercial real estate is being bought, sold, developed or mortgaged/re-mortgaged. Reasons for insuring specific risks are many and varied. Some common reasons include:

• Transfers risk: key risks and associated losses are transferred to the insurer, providing peace of mind.
• Assists with negotiations: the policy can help to replace the need for detailed contractual indemnities or unnecessary conditions, helping to preserve commercial relationships between the parties.
• Provides a practical solution: remedying an identified risk can be a complex and time-consuming process or may not be an option at all. In some instances, this may cause the transaction to break down entirely. Specific risk insurance offers a practical solution and can help to facilitate transactions.
• Faster and more cost-effective: it offers an effective solution that can often be implemented faster than negotiating detailed contractual terms, saving time and costs for buyers, sellers and lenders.
• Removes the need for escrow: it can remove the need to hold money in escrow, simplifying transactions.
• Facilitates financing: lenders with a conservative risk appetite may be appeased by having a specific risks policy in place, helping to facilitate financial close.

The Known Risk policy is a non-renewable insurance policy with a one-off premium, paid upfront. The period of cover runs for as long as the insured owns the subject property.

The types of losses covered include legal costs for defending or prosecuting a claim, third-party liability arising from an insured event, reduction in asset value, demolition, alteration and/or reinstatement costs, wasted development costs, and some financing costs.

The underwriting process begins with receiving the following information:

• Prospective insured’s details
• Property address
• Property value (transaction value)
• Current or proposed use of the property (e.g., continued use or development)
• Details of the identified issue requiring insurance
• If available, a copy of the legal advice or due diligence report

Based on this information, we can quickly provide an indication of insurability and price.

To obtain a quote, please send the enquiry to [email protected].

The policy contains a set of insured events designed to protect against financial losses arising from certain unknown risks that affect either (i) the title to the property (ii) use of the property and/or (iii) title to shares and units in a property-owning company or trust.

These insured events include, but are not limited to, losses arising from:

• Ownership issues (e.g. third parties demonstrating or asserting better title)
• Breaches of covenants, restrictions and easements
• Third party rights, including encumbrances and unregistered interests
• Boundary disputes
• Illegal building works
• Seller fraud and forgery
• Documents that were not registered against the title or otherwise undiscoverable

The policy can be utilised in real estate transactions where (i) land is transferred directly (through an asset sale) or indirectly (via a share or unit sale) and/or (ii) a refinancing is taking place. Below are some key scenarios where the product can provide value.

• General buyer protection: for (i) parties involved in buying and selling commercial properties, (ii) property funds/investors who frequently buy and hold real estate for passive income purposes and (iii) property developers, who frequently buy, develop and sell land
• Distressed transactions: where sellers may be unwilling or unable to give meaningful warranties
• Secured real estate financing: where lenders are exposed to title or use-related that could impact on the enforceability of value of its security
• Portfolio transactions: where conducting full diligence on every property may be impractical

In these scenarios, the policy can provide enhanced protection to risk-averse buyers. At the same time, the policy also operates, in effect, as a warranty replacement tool, which can be particularly useful where seller warranties are unavailable or limited.

For more information on how our Unknown Risks cover can assist with these scenarios, please visit the document downloads section below.

The policy is a non-renewable insurance policy with a one-off premium, paid upfront. The period of cover runs for as long as the insured owns or has an interest the property (directly or indirectly).

The types of losses covered include legal costs for defending or prosecuting a claim, third-party liability arising from an insured event, reduction in asset value, demolition, alteration and/or reinstatement costs, wasted development costs and some financing costs.

Yes, our dedicated Lender Protection Title Policy provides specific protection against legal and title-related risks that could impact the enforceability, priority, or value of a lender’s mortgage security. These risks can include fraud or forgery, undisclosed prior interests, breaches of planning or title conditions, and other defects that affect the borrower’s title or the property’s permitted use.

This gives lenders peace of mind that their mortgage interest remains protected throughout the term of the loan.

To obtain a quote, please send the enquiry to [email protected].