Do You Need Title Insurance When Buying Property in Victoria?
Purchasing a property is one of the biggest financial decisions you’ll make — and with it comes the need to manage risks. One way buyers can protect themselves is through title insurance, but is it necessary in Victoria?
Here’s what you need to know.
What Is Title Insurance?
Title insurance is a one-off policy that protects property buyers (and lenders) from certain risks linked to the legal ownership — or “title”— of the property. While more common in the United States, it’s increasingly offered and considered in Australia.
A typical title insurance policy may protect against:
- Errors or omissions in public records
- Unregistered interests or unknown claims on title
- Fraud or forgery
- Unapproved or illegal structures
- Encroachments or boundary disputes
- Issues with access, easements or zoning
What Risks Can It Cover?
Although policies vary between insurers, standard title insurance may cover:
- Unlawful structures or renovations not approved by council
- Title fraud or identity theft affecting ownership
- Errors in documents (e.g. incorrect signatures or registration mistakes)
- Issues with access to essential services
- Violation of restrictive covenants
- Boundary or survey issues
- Incorrect zoning or missing certificates
- Another party claiming ownership
This can offer peace of mind if defects emerge post-settlement that were unknown to you at the time of purchase.
What’s Not Covered?
Like all insurance products, there are exclusions.
Most policies won’t cover:
- Known risks disclosed in the Contract of Sale
- Structural defects or pest issues — these should be picked up via building and pest inspections
- Environmental contamination
- Non-compliant buildings that fail to meet building codes
- Risks you could have discovered with proper due diligence
That means title insurance complements (but doesn’t replace) standard pre-purchase investigations.
How Much Does Title Insurance Cost?
Title insurance is generally:
- A once-off premium, paid at settlement
- Based on the purchase price and type of property
- Priced from several hundred to over a thousand dollars, depending on the insurer
Unlike ongoing policies (e.g. home insurance), there are no annual premiums.
Is Title Insurance Mandatory in Victoria?
No — title insurance is not a legal requirement in Victoria. Many buyers choose to proceed without it, especially if the property has been recently developed or well documented.
However, it may offer added security in these scenarios:
- You’re buying an older property with unclear history
- You’re not comfortable interpreting planning certificates, zoning info or title documents
- You want protection from the unexpected, even if you’ve done all the right checks
Title insurance isn’t essential for every buyer — but for some, it can provide valuable peace of mind. It’s a tool to protect your property investment from hidden legal risks, especially where due diligence may not reveal every issue.
Before making a decision, it’s advisable to consult with a qualified conveyancer or solicitor who can provide guidance based on the unique aspects of your property purchase. They can help you assess the potential risks and determine whether title insurance is appropriate for your property and personal circumstances.
