Claims Story #1: Registration Gap
Our insured recently purchased a property in suburban Sydney. On the day of settlement, our insured's conveyancer conducted a final search which was clear.
Settlement proceeded and was concluded without incident.
Following settlement, but prior to the registration of our insured's transfer, a caveat was lodged by the parents of the vendor of the property, claiming an equitable interest in the property pursuant to an unpaid loan.
The caveat prevented registration of our insured’s interest in the property.
The Resolution - Registration of a caveat or writ, which prevents the insured's interest in the property from being registered or recorded, is a standard covered risk under clause 2.1 (d) of Stewart Title's Residential Purchaser Policy. In this claim, Stewart Title retained a national law firm to liaise with the caveator's lawyers in order to arrange a withdrawal of the caveat.
A duly executed withdrawal of caveat was provided by the caveator's lawyers and was submitted to the insured's mortgagee in order for the insured's transfer and the mortgagee's mortgage to be registered.
Stewart Title paid all legal fees and registration fees in relation to obtaining the withdrawal of the caveat.
In addition to the risks assumed by your purchaser client during the conveyancing transaction, your client also assumes risk following settlement, such as a caveat or writ being registered or recorded preventing your client's transfer from being registered.
At settlement, your client's lender typically receives your client's title documents for registration at the Land Titles Office. As the matter is now effectively out of your hands, you are no longer in a position to protect your client's interests. You rely on your client's lender to lodge the documents in a timely manner.
In some circumstances, the delay in registration can be a matter of months. If a caveat or writ is recorded during that time, your client may be faced with a costly priority dispute.
Stewart Title's Residential Purchaser Policy provides protection against this risk. Under a Stewart Title policy, your client will remain protected no matter how long it takes the insured's mortgagee to lodge the title documents at the Land Title Office.
With NO LIMITS on time for lodgement, you can be assured your client will be FULLY COVERED.
Claims Story #2: Unapproved Storage Rooms
Our insured purchased a home on the North Coast of NSW. The dwelling was elevated with a large under floor area which was being used for storage.
Some months after settlement, the local Council inspected the property and discovered that these storage rooms had been constructed without Council approval.
Council required the insured to provide a Certificate of Adequacy from a practicing structural engineer in relation to the unapproved building work. The insured was given 28 days to comply or else Council would issue a demolition order.
The Resolution - Stewart Title engaged a structural engineer to provide a Certificate of Adequacy in relation to the unapproved storage rooms. The structural engineer reported that the building work was structurally sound. Council was satisfied with the findings of the report and provided the insured with a letter confirming that Council would be taking no further action. Stewart Title covered the cost of the engineer's report.
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, indicated that in New South Wales alone 29% of brick homes and 32% of weatherboard homes inspected revealed illegal building work.
With NO CAP and NO EXCESS payable on illegal building work coverage, you can be assured that your client will be compensated for their FULL LOSS with a Stewart Title Residential Purchaser Policy.
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.