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Australian Division
Lenders Claims SummaryLenders Claims Summary
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PRIORITY OF MORTGAGE - OUTSTANDING STAMP DUTY

The insured mortgage could not be registered until additional stamp duty and penalties were paid following an Office of State Revenue objection to the assessment of the property value.

The loan was in default and the mortgage needed to be registered quickly to avoid imposition of additional fines and interest and to enforce the lender’s security.

The Resolution

The claim was covered under the Residential Lender Policy which provides coverage for any encumbrance, charge or lien having priority over the insured mortgage.
Stewart Title paid the additional stamp duty which allowed the insured’s mortgage to be registered.

PRIORITY OF MORTGAGE - OUTSTANDING BODY CORPORATE LEVIES

Following settlement the insured lender was notified that Body Corporate levies which predated the settlement of the insured mortgage were outstanding and a charge had been registered on the land by the Body Corporate for the purposes of selling the property to recoup the arrears.

The Resolution

The claim was covered under the Residential Lender Policy which provides coverage for unpaid body corporate levies existing as at the date of settlement of the loan.

Stewart Title paid the outstanding body corporate levies which removed the charge and the proposed sale of the property.

PRIORITY OF MORTGAGE – REGISTRATION GAP

Following settlement but prior to the registration of the insured mortgage, a third party lodged a caveat on the property preventing registration of the mortgage.

The Resolution

The claim was covered under the Residential Lender Policy which provides coverage for any encumbrance, charge or lien having priority over the insured mortgage.

Stewart Title engaged lawyers on behalf of the insured to obtain a Withdrawal of Caveat. A Withdrawal of Caveat was subsequently lodged allowing the insured’s mortgage to be registered.

Stewart Title covered all legal costs in obtaining the Withdrawal of Caveat and registration of the mortgage.

PRIORITY OF MORTGAGE – WRIT

After settlement of a purchase transaction but prior to registration of the transfer and mortgage a court order was issued freezing the assets of the vendor. Consequently, the purchaser was unable to register the transfer, and the lender was unable to register the mortgage.

At the time the court order was issued, the vendor (and his mortgagee) had received settlement funds from the purchaser, but because the Land Titles Office still showed the vendor as the registered owner, the purchaser and lender were unable to have their interests in the property registered.

The Resolution

Stewart Title pursued the necessary legal action to have the court order removed and registered the interests of the lender and purchaser.

ENFORCEABILITY OF MORTGAGE

Following registration of the mortgage, the borrower fell into default of the loan. The insured lender sought to enforce its mortgage and the borrower filed a defence claiming the mortgage was not enforceable.

The Resolution

Stewart has indemnified the insured lender in accordance with the Residential Lender Policy. Under the policy Stewart is responsible for all legal costs and expenses in resolving the issue on behalf of the lender.

MORTGAGE FRAUD

After settlement but prior to registration of the mortgage, the insured lender became aware that the borrowers were actually fraudsters who had used stolen identities and stolen bank cheques in the transaction.

The loan is now in default and the insured lender’s security is unable to be registered due to caveats being lodged on the title.

The Resolution

Stewart has indemnified the insured lender in accordance with the Commercial Lender Policy. Under the policy Stewart is responsible for all legal costs and expenses in resolving the issue on behalf of the lender.

MORTGAGE FRAUD - DEFENCE OF TITLE

A lender insured by Stewart Title was sued by a prior owner of the mortgaged property. The insured lender had advanced funds to a person claiming to be the owner of the property to finance the purchase of the mortgaged property. Less than a year later, the lender was sued by a woman who had, with her husband, owned the property for a number of years. She claimed that her signature on the transfer, as well as a series of mortgages were all forgeries. She claimed that title to the property should be returned to her, and enforcement proceedings by the lender halted until the matter of the fraud was resolved.

In this case, Stewart Title under the defence of title provision in the Policy defended the enforceability of the insured mortgage. This meant, amongst other things, that Stewart Title paid the legal fees and associated costs from the time of notification of the claim to the conclusion of proceedings.