The Stewart Title Residential Purchaser Policy provides protection to purchasers of real estate by guarding against loss incurred due to title and property related defects that generally are pre-existing and unknown to the purchaser at the time of purchase.
The Residential Purchaser Policy provides cover for properties that are zoned residential and rural. It applies to all types of title, except company title.
For a one time premium, the purchaser is indemnified forever on a no fault basis for losses up to 200% of the purchase price of the property.
For full details on premiums, refer to a Premium Schedule.
Cover is provided for a broad range of risks. Purchasers are covered for actual loss caused by risks such as:
- non approved structures which have been built by any previous owner of the property without the required Council permits or which do not comply with those permits (for rural properties this cover is limited to the main residence);
- someone else claiming ownership of a part or all of the land by adverse possession;
- forced removal or relocation of a structure because it encroaches over an easement or on to the neighbour’s property;
- any issue that would have been revealed in an up to date survey report (excluding boundary walls and fences);
- outstanding rates and taxes on the property which the insured is liable for as the current owner of the property.
Stewart Title also provides cover against the following risks where the circumstances creating or giving rise to these risks occur after settlement:
- fraud, forgery or mistake which lead to someone else claiming an interest in the land;
- someone else builds a structure, other than boundary walls or fences, which encroaches onto the insured’s land.
Standard cover is also offered for the period between settlement and actual registration of documents to guard against a third party interest registered on title after settlement but before registration of the insured’s interest.
Stewart Title can also provide cover over known defects discovered in the course of the conveyancing transaction for no additional premium. If a defect is discovered, please contact our Underwriting Department for custom underwriting.
In addition to covering actual loss suffered by the insured, Stewart Title has a duty to defend the insured’s title. Stewart Title will also cover all of the insured’s costs, legal fees and expenses if we need to defend their ownership.
Further, Stewart Title will reimburse rental charges for an equivalent property if the insured cannot use the property as their home because of circumstances insured under the policy. The rental charges will continue to be reimbursed until the cause of the claim is resolved.
Like all insurance policies, the Stewart Title policy excludes certain risks from cover. Some of these standard exclusions include:
- risks which cause no loss or damage;
- boundary walls and fences;
- risks which the insured creates, allows or agrees to;
- risks which are known to the insured, but not to Stewart Title;
- risks arising from business activities;
- risks or loss arising from environmental contamination or environmental protection;
- risks which occur or come into existence after the policy date (except where specifically included in the policy);
- claims under legislation relating to home building insurance;
- native title.
For full details of our standard cover and exclusions from cover, refer to the Residential Purchaser Policy.