News from First Title: Claims Chronicles – May 2016

5/20/2016
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What happened?

Our client purchased an original 1950s style home in SA with the intent of demolishing it and building their dream home. The client exchanged contracts and began to prepare plans for their new home. Shortly after settlement, the client submitted plans to the Council to construct their dream home. The plans were rejected by Council on the basis of a proposed heritage listing, which was applied just prior to settlement. The client was in shock and immediately contacted their conveyancer.

What did First Title do?
On assessment of the claim, it was revealed the conveyancer and the client were not on notice of the proposed heritage listing of the property as the certificates from Council relied on were not up to date. First Title engaged a lawyer and expert heritage architect in support of an application seeking to overturn the proposed heritage listing.

What was the resolution?
First Title accepted the claim pursuant to its ‘heritage cover’ on the basis that the client was not on notice that the house was heritage listed. First Title paid for all costs associated with successfully overturning the proposed heritage listing, including legal and expert evidence fees.

Total payment exceeded $11,000

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Registration Gap – Third Party Claim 

What happened?
One day after purchasing his home in WA, our client learned he could not become the registered owner of his property due to a third party claim. Our client was informed by his conveyancer that the stepchildren of the vendor registered a testamentary right to his property. The children claimed they were gifted the property in their mother’s will. The children refused to remove their interest in the land unless they were given money from the sale of our client’s property.

What did First Title do?
On assessment of the claim, it was revealed the conveyancer and the client were not on notice of a potential third party interest in the property. First Title engaged a lawyer to ensure our client would become the registered owner of the property and to put the potential interest of the vendor’s stepchildren in the property to rest.

What was the resolution?
First Title accepted the claim pursuant to its ‘registration gap’ coverage on the basis that between settlement and registration of our client’s transfer to our client’s name another interest was registered on the property title. First Title paid for all costs associated with successfully settling the dispute over the client’s property through mediation.

Payment to date exceeds $20,000

For more information on First Title’s insurance options call us on
1300 362 178. Alternatively, you can visit our website.

Source: email ​News from First Title: Claims Chronicles – May 2016

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