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 the insured 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 did not comply with those permits (for rural properties this cover only applies to the primary residence and not to other structures on the property) at the time the structures were built. 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. Unmarketability of your Title is not created by matters relating only to physical/structural conditions and/or physical/structural defects of the Land, including the improvement(s) located thereon.

Outstanding Rates & Taxes

Outstanding rates and taxes on the property which you are now liable for as the current owner of the property. 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.

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.

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.

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 as at the Policy Date
• 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 arising from non-compliance with laws, regulations or orders relating to fire safety
• Losses relating to poor workmanship or 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.