Our Commercial Purchaser Policy provides protection to purchasers of commercial and industrial real estate 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.
Stewart Title’s Commercial Purchaser Policy provides cover in respect of commercial, industrial and rural1 zoned land against certain unknown and hidden risks.
For transactions of up to $5,000,000, the Commercial Purchaser Policy provides cover for certain risks which are unknown to your clients and where circumstances creating or giving rise to the risks existed or occurred before settlement or during the registration period, including:
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 (for rural properties this cover only applies to the primary residence and not to other structures on the property). This coverage is capped at $160,000.
Survey/Boundary Defects
Any adverse matters affecting Title that would have been revealed in an up-to-date survey report (excluding boundary walls and fences). Please note that boundary and survey coverage will not apply to land where the land area size exceeds 50 acres.
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 affects your ownership at the time of purchase.
Planning & Title Defects
Loss due to non-compliance with existing zoning and planning laws, unregistered easements and covenants, access orders, access rights or a right of way, lack of legal access, defects in title to the land.
Unmarketability of Title
Loss on resale of the property because of the existence of a covered title risk.
Outstanding Rates & Taxes
Outstanding rates and taxes on the property which you are now liable for as the current owner of the property.
Since commercial transactions vary in nature, we also offer a policy for commercial properties with a purchase price of over $5,000,000 which may be tailored to suit your client’s risk management needs.
Standard Exclusions
Like all insurance policies, a Commercial Purchaser Policy excludes certain risks from cover. Some of these standard exclusions include:
- Risks which cause no loss or damage
- Boundary walls and fences
- Risks or loss arising from environmental contamination or environmental protection
- Risks or loss arising from leasing activities or loss of business revenue
- Risks which the insured creates, allows or agrees to
- Risks which are known to the insured, but not to Stewart Title
- Risks which occur or come into existence after the policy date (except where specifically included in the policy)
- Native title
- Losses arising from mine subsidence
- Losses relating to the infestation or dilapidation of structures, or matters disclosed in a building inspection report or home inspection report obtained by the insured prior to the Policy Date
- Losses arising from non-compliance with laws, regulations or orders relating to fire safety
- Losses relating to the condition and repair of any structures
Please contact our Underwriting Department to discuss your transaction and for further information on how we can help to protect your client.
1Where the property is used for a commercial enterprise.
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.