Illegal Building Work - Is Your Client Protected?

Illegal building work remains a serious issue for conveyancers, solicitors and their clients. Recent national studies conducted by Archicentre, the building advisory service of the Royal Australian Institute of Architects, indicates that the incidence of illegal building work remains high in nearly all Australian states and territories, even for new homes (5-10 years old). Weatherboard homes in particular showed higher rates of illegal building work*.

• Western Australia -- 21% of brick homes and 25% of weatherboard homes revealed illegal building work.
• Victoria -- 32% of brick homes and 38% of weatherboard homes inspected revealed evidence of illegal building work.
• New South Wales -- 29% of brick homes and 32% of weatherboard homes revealed illegal building work.
• Queensland -- 21% of brick homes and 25% of weatherboard homes revealed illegal building work
• South Australia -- 35% of brick homes and an incredible 42% (nearly half!) of weatherboard homes revealed illegal building work.

Illegal building work carries the risk of demolition or upgrading orders being issued by Council. The costs of complying with these orders can be financially crippling for a home owner. For example, on one claim handled by Stewart Title the cost of demolishing and rebuilding an illegal extension exceeded $110,000.

With NO CAP and NO EXCESS payable on illegal building work coverage, the insured was compensated for their FULL LOSS.

To find out how your clients can benefit from a Stewart Title Residential or Commercial Purchaser or Existing Owner Policy, please contact our Underwriting Department on 1800 300 440 or by fax on 1300 881 432.

*Source: “Archicentre Releases Fault Survey on Old and New Homes” ( 4 September 2008) http://www.medialaunch.com.au/878/, “Weatherboard Homes Top the National Faults Survey” (18 September 2008) http://www.medialaunch.com.au/886/