Title indemnity insurance

Patmoore

Right then, hopefully someone can help me with this. I'm probably off shoot but our solicitor has told us that there is a defect on the title on the property we are trying to buy. A wall was taken down a few years ago by older owners and building regs consent wasn't sought from the council.

Done some reading and apparently title indemnity insurance would cover us if something went wrong with the wall supports during our occupancy.

Is this even remotely accurate?

Kittian_the_Blue

The policy would cover you for any issues arising from the breach of building reg consents, for example if the local council officer were to turn up and say that the wall had to be rebuilt - those costs would be covered. It would not cover you for damage that is caused because something went wrong with the wall supports.

Patmoore

I thought that was Building Regs Indemnity, not a Defective Title Indemnity.

Cripes, think i'll give it a rest for the night, not been able to get it out of my head

Patmoore

Anyone else care to share some details on Defective Title Indemnity Insurance based on my OP, please?

Quentin

Your solicitor is the one to explain this fully to you in relation to the concern he has about the specific property.

Get him to explain it fully to you, and don't close the session with him until you are completely happy you understand what this all entails.

Patmoore

That is my plan for tomorrow. The solictitor hasn't brought this up, I've just seen very similar examples on the net (infact a couple of the same) and may or may not have understood it.

Alas each case is different, so I'll contact him in tomorrow

Kittian_the_Blue

Indeed, defective title policies are very individual and need to be understood properly by both the Solicitor and the purchaser - sadly I have seen a number of these policies taken out that provide no cover whatsoever for the risk that is being taken on. Rectifying these sorts of issues are usual expensive and ensuring the cover is adequate and for the right purpose is vital

silvercar

Defective title insurance is usually used where there is something not quite right with the title deeds; often the title is possessionary only or the title hasn't been registered. It covers you if someone knocks on your door claiming ownership years later.

An indemnity for building regs covers the lack of a certificate. Should the council come knocking on your door demanding a certificate, it covers the cost of getting one. Theoretically it covers you for the loss in value caused by the certificate not being there. It does not cover you for shoddy workmanship, so you need to ensure you are happy with the work done. You don't want a supporting wall falling on you as you are watching TV.