Continue with Facebook
Continue with Email
Buying property is an exciting milestone but what if the land you just bought suddenly has a disputed title or hidden legal claims? That's where title insurance comes in.
If you’ve never heard of it before, you’re not alone. Yet, title insurance is one of the most important yet underutilized protections in real estate, especially in regions like Zimbabwe where land ownership disputes are common.
What Is Title Insurance?
Title insurance is a policy that protects property buyers and mortgage lenders against losses related to title defects. These defects may not be discovered during the conveyancing or due diligence process.
Simply put: it covers risks like someone else claiming ownership of your land after you’ve already bought it.
Common Title Issues That Title Insurance Covers
- Forgery or fraud in previous sales or title transfers
- Unknown heirs of former owners who come forward
- Unpaid property taxes or rates attached to the land
- Clerical errors in legal documents or land records
- Double sales or misrepresentation of ownership
In markets like Zimbabwe, where property scams and documentation irregularities are frequent, these risks are not theoretical they’re real.
How Title Insurance Works
You purchase title insurance as a one-time premium payment during or after the property transfer process. In return, the insurer agrees to:
- Investigate the title’s validity
- Defend you in court if someone challenges your ownership
- Compensate you if you lose part or all of your property due to a covered issue
Two Types of Title Insurance:
1. Owner's Title Insurance protects the buyer and is purchased during the property transfer process
2. Lender's Title Insurance protects the mortgage lender and is required by lenders before loan approval
Why You Might Need Title Insurance in Zimbabwe
Zimbabwe’s land ownership structure has faced numerous challenges over the past two decades, including:
- Incomplete digitization of land records
- Cases of fake or duplicated title deeds
- Historical land redistribution policies causing ownership confusion
Stat: According to local real estate reports, over 25% of property disputes in Zimbabwe’s major cities are related to ownership claims or fraudulent sales.
Title insurance provides peace of mind and financial protection in such a landscape.
How Much Does Title Insurance Cost?
Costs vary by:
- Property value
- Location
- Insurance provider
However, it’s generally a once-off payment, ranging from 0.3% to 1% of the property's purchase price.
For example: On a US$100,000 home, title insurance might cost around US$300 to US$1,000 a small price to pay for long-term protection.
Is Title Insurance Legally Required?
In Zimbabwe, title insurance is not legally mandatory, but it is highly recommended especially for:
- First-time homebuyers
- Diaspora buyers purchasing remotely
- Buyers of undeveloped or inherited land
- Investors buying from distressed sales or auctions
Pros and Cons of Title Insurance
Pros
- Protects against ownership disputes
- Covers legal fees and potential losses
- Peace of mind in high-risk markets
Cons
- One-time upfront cost
- Doesn’t prevent fraud it mitigates the risk
- May not cover all defects found after purchase
Final Verdict: Should You Get Title Insurance?
If you're buying property in a high-risk environment or without full visibility into its legal history, the answer is clear: yes, you should get title insurance.
It’s a smart way to protect your biggest investment from hidden legal threats. Think of it as a security net for your land or home purchase one you’ll be glad to have if things ever go wrong.
