What is Title Deed Insurance?

Title deed insurance is an insurance policy that specifically protects against hidden or unknown issues that may affect your good title to your property. It is a relatively new product in Spain but is already used to safeguard against risks associated with property purchases in the USA, UK and many other European countries.

You may ask why you need Title Deed Insurance?

Considering that the purchase of your property is probably one of the most significant investments that you will ever make, it is sensible to take steps to ensure that your investment is protected. Today in Spain, all too unfortunately, there are many horror stories about property demolition, property being repossessed by local authorities, fraudulent vendors, identity theft – the list is endless…. but all have one issue in common, they could result in you having your investment seized from you without compensation - UNLESS, you have Title Deed Insurance for that property. You would insure your property against problems such as fire and theft so it makes sense to insure also, against having good title to your property- especially in Spain.

 In Spain few purchasers seek out independent legal advice and rely solely upon, estate agents and notaries to ensure that the property purchase is dealt with correctly. Whilst a Notary will  indeed, as a public official ensure that the property passes to your name they are not required to give independent legal advice. Your title is not guaranteed absolutely, as there can be many hidden or unknown risks that the most diligent of professionals or the most diligent registration system overlook. Such defects in your title may result in your loss of the property without compensation.

What does Spanish Title Deed Insurance protect against?

Spanish Title Deed Insurance insures your title against unknown or hidden defects to a value of 360,000€ and grants you some peace of mind.

  • Fraud,  forgery, incompetent seller, incapacity or impersonation
  • Someone else owns an interest in your property, hidden heirs
  • Access problems to the property
  • Boundary problems
  • Demolition orders
  • Problems of registration at The Land Registry
  • Registered or restrictive covenants which affect your rights to enjoy the property adversely
  • Your Title is unmarketable
  • Defective or fraudulent building licences
  • No Licencia de Primera Occupación

How do I make a claim?

A central contact point for your claim. Your claim can be made in English. Furthermore, there is a commitment by the policy underwriters to resolve the situation within a six month period from the date of your claim. If those real estate law experts are unable to resolve the issue covered by the policy within 6 months you will be compensated for your incurred losses to a maximum of  360,000€

How much does the policy cost and how long is it valid?

No annual premiums, a one off payment that covers you for a period of 20 years.