Victoria - Illegal Building Works

Claims Chronicles

The background

Debbie Wright purchased a property as her primary residence in Victoria and settled in November 2020.

In January 2025, Debbie received a Building Notice from Council after they discovered that two bungalows and a shed on her property had been illegally constructed, prior to her purchasing the property.

Under the Building Notice, Wright was instructed to show cause why the three structures should not be demolished. 

What happened next?

After the claim was submitted, First Title obtained the full conveyancing file and requested the property information from the Council and instructed a Building Consultant to attend the property and inspect the unapproved structures.

Upon receipt of the appointed Building Consultants Causation report, it was determined that the structures would need to be demolished. A decision was made to accept the Claim under Covered Risk 4.6 of the Policy, the Illegal Building Works Coverage, and First Title requested the Building Consultants obtain quotations to have the Unapproved structures demolished. A quotation was provided in the amount of $30,000 to demolish the structures.

Additionally, a Building Valuer was appointed to determine the loss in market value that the Property had sustained, had it been purchased without the three structures. It was determined that the property would have been valued at $120,000 less, had it been purchased at the time without the three structures present.

What did we do?

First Title paid $150,000 that being the cost to demolish the structures, as well as compensation for the difference in market value if the illegal structures were not present.

Payment: $150,000 | Claim Type: Illegal Building Works

*Name has been changed for privacy purposes.