A Guide for Commercial Property Owners in Australia

First Title has recently introduced a new and innovative product to the market, and we understand that many of our stakeholders may not yet be aware of its features and advantages.

Here, we aim to unearth the benefits of our Commercial Solutions title insurance product, to provide you with the knowledge you need to make informed decisions and protect your commercial property investments.

Understanding title insurance: an overview

Title insurance is a relatively new concept in the Australian real estate landscape, especially in the commercial property sector. Traditionally, property transactions have relied on the meticulous examination of historical records (performed by property lawyers) to ensure a clear title. However, despite these efforts, unforeseen issues can arise, potentially jeopardising an investment.

Title insurance serves as an added layer of protection, offering protection against a wide range of risks that may threaten your property title. It goes beyond the scope of traditional due diligence by safeguarding against hidden defects, encumbrances, and other on-title and off-title issues that may surface in the future.

There is a one-off premium payable prior to settlement which provides coverage for the lifetime of ownership for buyers.

What sets First Title's Commercial Solutions product apart?

First Title's parent company is First American Financial Corporation, a 135-year-old insurance and financial services company listed on the NYSE, and one of the largest providers of title insurance throughout the US, Canada and the UK. In Australia, we have leveraged the experience of our global counterparts and Australian professionals to meticulously craft a commercial property policy that addresses the unique challenges faced by property owners in Australia, providing a shield against potential title risks which can affect cashflow and returns.

One notable feature is the breadth of coverage. First Title's policy covers over 20 risks for commercial property, including but not limited to:

Title issues such as:

Title defects
Encumbrances
Caveats

Off-title issues such as:

Lack of legal access to the property
Non-compliance with zoning regulations
Incorrect responses to search inquiries from government agencies

Transaction issues, such as:

Title fraud
Lack of corporate authority
Survey issues
Legal error at time of purchase
Errors in settlement adjustments to outgoings

The benefits of title insurance

While title insurance is a relatively new concept, its benefits are already becoming apparent to savvy property investors. Some of the key advantages include:

Peace of Mind: Title insurance provides peace of mind by offering financial protection against unforeseen title defects or disputes.

Efficient Settlement: With the benefits of a title insurance policy, property transactions may proceed more smoothly and efficiently.

Enhanced Property Value: Knowing that your investment is protected for the time you own the property, including if an issue is discovered during the sales process.

Whether you're a seasoned property investor or a newcomer to the market, understanding title insurance is crucial in securing the future of your commercial property investments.

Commercial Title Insurance Unveiled