Title Insurance for Home Buyers

When buying a property there are many inherent risks which may cause loss or affect ownership. Title insurance is a specialised type of insurance that provides home buyers with protection against certain unknown and hidden risks which may exist at the time of purchase.

Cover is Provided for a Broad Range of Risks

Unapproved Building Work
Enforcement action by a Local Authority in relation to unapproved structures which have been built without the required Council permits or which do not comply with those permits of which the buyer is unaware at the time of purchasing the property. This cover is capped at $160,000.00.
For rural properties this cover only applies to the primary residence including sheds, carports and garages used for residential purposes, and any swimming pool, and not to other structures on the property.

Survey/Boundary Defects
Any adverse matters that would have been revealed in an up-to-date survey report. For rural properties this cover applies where the land size is less than 20 hectares.

Registration Gap
Someone else lodges a dealing which prevents the buyer’s interest from being registered or recorded.

Fraud, Forgery & Identity Theft
Loss due to fraud, forgery or identity theft which results in the buyer being deprived of ownership of the land.

Planning & Title Defects
Loss due to non-compliance with existing planning and zoning laws, unregistered easements and covenants, access orders, access rights or a right of way, lack of legal access or defects in title to the land of which the buyer is unaware at the time of purchasing the property.

Outstanding Rates & Taxes
Outstanding rates and taxes on the property for which the buyer later becomes liable as the current owner of the property.

Real–Life Claims
Here are just a few real-life stories where title insurance issued by Stewart Title provided protection to home buyers.

Unapproved Building Work – Extension
The insured purchased a home in Sydney. During the purchase, the insured elected not to obtain a Building Information Certificate. After settlement, the insured approached the local Council with plans to construct a new pergola. Council informed the insured that an extension that already existed on the house was not approved. After further investigation, Council issued a Demolition Order for this extension because it was built without development consent in circumstances where development consent was required, and with- out adequate structural foundations. A previous owner had built the extension on a thin layer of ‘pebblecrete’. A pre-purchase building inspection report had failed to uncover any defects.

The Resolution
Stewart Title indemnified the insured in relation to complying with the Council Order and paid more than $110,000 to demolish the extension and reconstruct it in accordance with building code standards.

Outstanding Rates – Error by Council
Following settlement, the insured received notification from Council that there were outstanding water/sewerage rates in relation to the insured property. An error had been made by the Council with respect to the amount of rates payable as at the date of settlement.