What Is Title Insurance and Why Does It Matter in Queensland?
When you buy a property in Queensland, you rely on the title search to reveal every registered interest, encumbrance, easement, and dealing instrument attached to the land. But what about the risks that a standard title search simply cannot detect? That is exactly where title insurance steps in.
Title insurance is a specialised policy that protects property buyers and lenders against financial losses arising from defects in a property title — including defects that existed before settlement but were never recorded on the title register, or that could not reasonably have been discovered through a standard search.
In Queensland, where the Torrens title system operates under the Land Title Act 1994, the register is generally regarded as conclusive. But "generally" is not the same as "always", and for many buyers, the gap between those two words represents significant financial risk.
What Risks Does Title Insurance Cover?
A comprehensive title insurance policy in Queensland typically covers a range of scenarios that fall outside the scope of a standard title search:
1. Fraud and Forgery
Property fraud is a growing concern in Australia. Fraudulent transfers, forged signatures on mortgage documents, and identity theft can all result in a legitimate owner losing their property or being saddled with a mortgage they never agreed to. Title insurance can provide financial protection against these events.
2. Undisclosed Easements and Rights of Way
While registered easements appear on a Queensland title search, some older rights of way or prescriptive easements may exist without formal registration. These unregistered interests can affect how you use your land and may not appear on even a thorough title search.
3. Building and Improvement Encroachments
If a fence, garage, or dwelling on the property was built over a boundary or onto a neighbouring lot, this constitutes an encroachment. Survey plans can reveal boundary positions, but pre-existing structures may not align with registered lot boundaries. Title insurance can cover the legal and remediation costs associated with such disputes.
4. Unapproved Building Works
Queensland requires council approval for most building works. If a previous owner added a structure without a building permit or certificate of classification, the new owner can face orders to demolish or rectify the work at their own expense. Some title insurance policies extend cover to this scenario.
5. Outstanding Statutory Charges and Rates
In rare cases, outstanding local government rates or land tax obligations may not be fully discharged at settlement. While Queensland conveyancing practitioners conduct final searches, errors do occur. Title insurance can backstop this exposure.
6. Adverse Possession Claims
Under Queensland law, a person who has occupied land openly and continuously for an extended period may lodge an adverse possession claim. If a neighbour has been using a portion of your property for decades, an adverse possession claim could affect your title after purchase. Title insurance provides a financial safety net in such circumstances.
7. Survey and Boundary Discrepancies
Even with a current survey plan search (available from $85.90), physical boundaries sometimes differ from what the plan suggests. Old surveys, inconsistent datum points, and historical errors can result in boundary positions that differ from what you believed you were buying.
What Title Insurance Does NOT Cover
It is equally important to understand the exclusions. Title insurance is not a substitute for thorough due diligence. Policies typically exclude:
- Known defects: If you were aware of a problem before settlement and chose to proceed, the insurer is unlikely to pay.
- Environmental contamination: Soil contamination, asbestos, and other environmental risks generally require separate environmental searches.
- Future zoning changes: Title insurance does not cover changes to planning law after settlement.
- Building defects: Structural defects, rising damp, and similar issues are covered by home warranty insurance, not title insurance.
- Body corporate matters: Outstanding body corporate levies or disputes typically fall outside title insurance cover and require a separate body corporate title search.
Title Insurance vs Title Search: Understanding the Difference
Title insurance and title searches serve fundamentally different purposes — and you should not think of one as a replacement for the other.
A title search (currently priced at $74.50 for a Current Title search) is a search of the Queensland land registry that reveals the current registered state of a property. It shows:
- Who the registered owner is
- Any registered mortgages, caveats, or charges
- Registered easements, covenants, and encumbrances
- The lot and plan number, area, and description
A title search tells you what is on the register right now. Title insurance protects you against what the register does not show — or what was done incorrectly in the past.
Used together, a thorough pre-purchase title search and a title insurance policy form a powerful two-layer protection for Queensland property buyers.
Do Queensland Lenders Require Title Insurance?
Most Queensland mortgage lenders take out a lender's title insurance policy as a matter of course — but this policy protects the lender, not you as the borrower. If you want personal protection, you need to take out a separate owner's title insurance policy.
Owner's title insurance is a one-time premium paid at settlement. It provides protection for as long as you (or your heirs) own the property. Given the relatively modest cost compared to a Queensland property purchase price, most conveyancers recommend it as standard practice.
How Does a Historical Title Search Relate to Title Insurance?
For properties with a complex ownership history, older dwellings, or land that has changed hands many times, a Historical Title Search ($86.50) can reveal chains of ownership back to 1994 — and an Image of Certificate of Title ($76.90) can go even further, providing access to pre-computerisation records.
Historical searches help identify when encumbrances were registered, who signed key documents, and whether historical dealings were properly executed. This information is also valuable context for your title insurer when assessing the risk profile of a property.
Steps for Complete Title Due Diligence in Queensland
For best practice property due diligence in Queensland, consider this layered approach:
- Current Title Search ($74.50) — Confirm current ownership, registered interests, and encumbrances.
- Survey Plan Search ($85.90) — Understand lot boundaries, easement corridors, and building setbacks.
- Dealing Instrument Copies ($91.80 each) — Obtain full text of registered documents such as easement terms, covenants, and caveats.
- Historical Title Search ($86.50) — For older properties or complex histories, trace ownership and dealing activity back through the decades.
- Body Corporate searches — For units, townhouses, and strata properties, obtain body corporate records.
- Title insurance — Obtain an owner's policy from a reputable Australian insurer to cover residual risks.
Frequently Asked Questions: Title Insurance in Queensland
Is title insurance compulsory in Queensland?
No. Title insurance is not a legal requirement for property buyers in Queensland. However, it is widely recommended by conveyancers and solicitors as prudent risk management, particularly for older properties or those with complex histories.
When should I buy title insurance?
Title insurance is typically arranged during the conveyancing process and takes effect at settlement. You should discuss it with your conveyancer early in the transaction so there is time to review the policy terms before settlement day.
Can I get title insurance after settlement?
Some insurers will issue a retrospective owner's policy after settlement, but options become more limited and the process more complex. It is always better to arrange title insurance before you settle on a property.
Does title insurance replace the need for a title search?
No. Title insurance complements a title search — it does not replace it. A thorough title search is the foundation of your due diligence; title insurance covers the residual risks that a search cannot eliminate.
Conclusion: Title Insurance as Part of Your Queensland Property Strategy
Buying property in Queensland involves navigating a complex web of registered and unregistered interests, historical dealings, and physical realities that may not perfectly align with what the title register shows. While a comprehensive title search from TitleFinder gives you clear visibility over the registered state of the property, title insurance extends your protection to the unknown.
For most Queensland buyers, the combination of a thorough pre-purchase title search and a one-time title insurance premium represents the most cost-effective risk management strategy available. Talk to your Queensland conveyancer about both — and make sure you understand exactly what each one does and does not cover before you sign.
Ready to start your title search? Order a Queensland title search today from $74.50 and get your results fast.