Recent Purchaser Claim

Unsatisfied Condition of a Development Consent
Our insured purchased a property in suburban Sydney that was part of a three lot subdivision. This subdivision created a vacant lot at the front of our insured’s property with street frontage. Located on this vacant lot was an overhead powerline to an electricity mains post that supplied electricity to our insured’s property.

After settlement, the owners of the vacant lot were required to disconnect the electricity in order for construction of their dwelling to commence. As a result, the electricity supply was disconnected to our insured’s property.

In the development consent for the subdivision, it was a condition that underground electricity be provided to all lots in the subdivision, including to our insured’s property. This condition had never been complied with by the previous owner to the satisfaction of the electricity authority.

Our insured was required to install the underground electricity mains in order for electricity to be re-supplied to the property.

The Resolution-: Stewart Title compensated the insured for the costs of the installation of the underground electricity mains on the basis that the non-compliance by the previous owner with the conditions of the subdivision consent was a covered risk under the Residential Purchaser Policy.

This was what our insured had to say:

"Being the owner of a successful mortgage company “Complete Home Loans”, I am continually recommending products to my clients. Having recently purchased a property myself, my conveyancer, Allison Clark from The Shire Conveyancer, recommended title insurance which I took up thankfully. Later I found it necessary to put in a claim for a most “unexpected” problem which the team at Stewart Title processed in a most professional manner. I was very relieved when this claim was paid. I will certainly be encouraging my clients to take out title insurance with any property purchase." -- Steve Bowers, Insured

Title Insurance as a Risk Management Tool

This claim illustrates the importance of title insurance as a valuable risk management tool. The Shire Conveyancer is to be congratulated for implementing title insurance as part of the firm’s risk management solutions. In this case, the client was fully compensated for his loss arising from a matter which could not have been discovered as part of the normal conveyancing transaction.