The Residential Strata Policy provides protection to purchasers of strata title properties 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 Strata Policy covers strata title properties that are zoned residential.

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.

Cover is provided for a broad range of risks including:

Unapproved Alterations

Enforcement action by a Local Authority (including an Owners Corporation, Body Corporate or Strata Company) in relation to alterations made to the Strata Unit without the required approval from the Local Authority, of which you are unaware at the time of purchasing the Strata Unit. This coverage is capped at $160,000.

Registration Gap

Someone else lodges a dealing during the registration gap which prevents your interest from being registered or recorded.

Fraud, Forgery & Identity Theft

Loss due to fraud, forgery or identity theft which results in you being deprived of your ownership of the Strata Unit.

Planning & Title Defects

Loss due to non-compliance with existing zoning and planning laws, unregistered easements & covenants, access orders, access rights or a right of way, lack of legal access, and other defects in title to the Strata Unit, such as a boundary encroachment, of which you are unaware at the time of purchasing the Strata Unit.

Outstanding Rates, Taxes & Strata Levies

Outstanding rates, taxes and strata levies (including special levies) on the property which you are now liable for as the current owner of the Strata Unit. This coverage does not apply to land transfer duty, land stamp duty, foreign buyer duty or foreign investor surcharge or any levies or special levies struck after the Policy Date. 

Local Infrastructure or Local Improvement Levies

Errors made by the insured’s practitioner or Local Authority in respect of unpaid local infrastructure or local improvement levies or charges due to a Local Authority which may result in an encumbrance, charge or lien or writ on the Title to the Strata Unit.

Risks Occurring After Settlement

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 leads to someone else claiming an interest in the strata unit
• Someone else builds a structure, other than boundary walls or fences, which encroaches onto the strata unit
• A Local Authority assesses supplemental rates or taxes not previously assessed against your property for any period prior to the Policy Date

Known Risks

We can also provide cover over known risks discovered in the course of the conveyancing transaction for no additional premium. If a known risk is discovered, please contact our Underwriting Department for custom underwriting.

Defence of Title

In addition to covering actual loss suffered by the insured, Stewart Title may defend any challenge to the insured’s title, including that part of any proceedings or court case, which is based on a Covered Risk under the Policy. 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 reasonable rental charges for an equivalent property if the insured cannot use the property as their principal place of residence because of circumstances insured under the Policy. The reasonable rental charges will continue to be reimbursed until we settle the claim or until the insured is able to resume the use of the property as the principal place of residence (whichever is the earlier).

Standard Exclusions

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
• Risks which the insured creates, allows or agrees to
• Risks which are known to the insured, but not to Stewart Title as at the Policy Date
• Risks that arise because the insured did not pay full value for the Land
• Risks arising from business or commercial activities, including, but not limited to, any loss of rental income or loss of business revenue
• 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)
• Native title or claims arising directly or indirectly from legislation with respect to the protection of aboriginal cultural heritage
• Losses arising from mine subsidence
• Losses relating to the infestation or dilapidation of structures, or matters disclosed in a building inspection report, survey report or home inspection report obtained by the insured prior to the Policy Date
• Losses relating to poor workmanship or the condition and repair of any structures
• Claims for which there is protection under home and building insurance or builders warranty insurance

Contact us for more information.

Please note that the information on title insurance provided is solely for general information purposes only and does not relate to your personal circumstances. It is not intended to be a complete description of all the terms, conditions and exclusions applicable to the title insurance product.  Please refer to your issued policy for full details, including the specific terms and conditions, exclusions and other limits on coverage. Sample policies are available here or upon request.