Our insured purchased a home in suburban Sydney. After settlement, our insured approached the local Council with plans to construct a new pergola. Council informed our insured that the extension on the house was not approved. After further investigation, it was discovered that a previous owner had built the extension on a thin layer of ‘pebblecrete’. As a result, Council issued a Demolition Order for the extension because it was built without adequate structural foundations and without any permits. A pre-purchase building inspection report had failed to uncover any defects.
The Resolution-clause 3.1 (n)(iii): Stewart Title spent more than $110,000 to demolish the extension and reconstruct it in accordance with building code standards. Stewart Title also provided and paid for alternative accommodations for our insured’s dog during the re-construction.
Unpaid Council Rates – Incorrect Verbal Update
Following settlement, the insured received notification from the local Council that there were outstanding Council rates in relation to the insured property. An error had been made by the Council when providing a verbal update of the council rates certificate at the time of settlement with respect to the amount of rates payable.
The Resolution – clause 2.1 (t): Stewart Title promptly paid the outstanding rates plus interest that had accrued thereon. Stewart reserved its rights to take subsequent action to recover the outstanding rates from Council.
Here's what our customer had to say about how we handled their client's claim:
"Our client recently lodged a claim with Stewart Title in relation to outstanding rates caused by an incorrect verbal update from Council prior to settlement. Stewart Title resolved the matter promptly and professionally. We were very impressed with the fast and efficient service. Thanks again."-- City & Country Conveyancing, Bathurst
Illegal Conversion
Our insured purchased a house in NSW which had clearly been extended with two additional rooms and a large ensuite. Our insured’s conveyancer made enquiries of Council in relation to whether the extensions had been Council approved. The Council supplied the conveyancer with a series of interim inspection notices and a final inspection notice which indicated that the works had been approved by Council.
Not long after settlement, the insured lifted some tiles in the shower and discovered that there was no waterproof membrane under the shower recess where it was supposed to be. The water had damaged the under flooring and all of the tiles. When the insured consulted the inspection records, a wet area inspection had clearly been carried out and passed by Council.
Upon investigation, it was revealed that the previous owners had altered the ensuite configuration after they obtained the final inspection certificate. However they had not completed the waterproofing for the new wet area or completed the timber framing properly prior to putting the property on the market. The cosmetic work hid the defects from visual inspection.
Council issued upgrading orders on the basis that the subsequent alteration works had not been carried out with Council approval.
The Resolution- clause 3.1 (n)(iii): Stewart Title indemnified the insureds and covered the costs of rectifying the ensuite to Council’s satisfaction.
Here's what our insured had to say about how we handled this claim:
I really wanted to take the time to say THANK-YOU!!! My husband and I have been really appreciative of the level of customer service you have provided us with right from the beginning of this process. We have often commented to friends just how impressed we have been with the level of service and advice, not to mention the speed with which you have handled this claim. It is definitely the kind of customer service you often hear people saying doesn’t exist any more. However in your case you have been an exception and have surpassed all our expectations. I would definitely not hesitate in recommending Stewart Title to friends or family.” -- L & J Fittler, NSW, Insured