Chancel Liability Insurance - who usually pays?

Tunstallstoven

Hi all

I'm a first time buyer and my solicitor - following a Chancel Search - has suggested we take a Chancel Liability Insurance. He says it is usual in these circumstances for the seller to pay for the insurance. The Estate Agent/Seller are saying the opposite - that it is usual for the buyer to pay for it.

Could anyone with a bit more house buying experience say what they think?

Many thanks

Max

caeler

I don't know the answer but my friend also a FTB is also faced with this and the seller has refused to pay and because she doesn't want to loose the house she has agreed to pay.

IMHO I would expect the seller to cover these costs, I paid for an indemnity policy to cover non-fensa windows for my recent sale, I think its the same thing (although I think the chancel cover costs alot more!!)

I'm sure others with alot more experience will be along shortly!

Cannon_Fodder

http://forums.moneysavingexpert.com/showthread.html?t=306856

DVardysShadow

Take the insurance yourself and drop the offer by £500.

You are buying a property which has a sealed box which may or may not contain an unpleasant surprise. If the seller wants you to take responsibility for the box, you should insist on the insurance.

Tunstallstoven

Thanks for the advice and the link....

I've been reading up and it seems this argument over who should pay is quite common. Perhaps 50/50 would be a fair compromise.

It seems there are other insurers other than ChancelSure - but I don't think comparison websites will probably cover something like this! I'll see what I can find. In the meantime, does anyone know of other insurers or comparison sites to try for Chancel Liability Insurance?

Milliewilly

Max_Dread wrote: »

Hi all

I'm a first time buyer and my solicitor - following a Chancel Search - has suggested we take a Chancel Liability Insurance. He says it is usual in these circumstances for the seller to pay for the insurance. The Estate Agent/Seller are saying the opposite - that it is usual for the buyer to pay for it.

Could anyone with a bit more house buying experience say what they think?

Many thanks

Max

I got the sellers to pay. I viewed it as a problem with the survey that would come up with any successive buyer and therefore they should pay. Its only about £100 anyway. Up until you exchange its not your house anyway so why pay for insurance on something you don't own and why exchange if its not sorted?

Richard_Webster

When there is anything negative about the property or the search results relating to it the normal thing is for the seller to pay.

Chancel Repairs have come to be a semi-exception to this rule because:

a) seller's solicitor says to seller that buyer's solicitor wants seller to pay for an indemnity insurance. Seller says "No". Because it is so complicated it is easier for the solicitor not to try to explain why the buyer's have a case for asking for it so they come back and say their clients won't pay for it.

b) cost to buyer is not that great and once they have been told "NO" trying to argue the point is only going to waste time so buyer ends up paying.

There are loads of threads on this which you can look up if you want to find out the background. Some practices such as my own routinely insure on a block policy (only available to clients and buyers from them) which costs less than the cost of the search and you don;t then have the further £50-£60 to find if the search shows a possible risk. When looking for conveyancing estimates it's worth asking about whether the firm insures or searches.

CloudCuckooLand

No self-promotion please...

Read the forum rules.

Spam button has been hit.

timmyt

Max_Dread wrote: »

Hi all

I'm a first time buyer and my solicitor - following a Chancel Search - has suggested we take a Chancel Liability Insurance. He says it is usual in these circumstances for the seller to pay for the insurance. The Estate Agent/Seller are saying the opposite - that it is usual for the buyer to pay for it.

Could anyone with a bit more house buying experience say what they think?

Many thanks

Max

the Buyer pays as the Seller is walking away and you as buyer pay for your period of ownership. it's an overhead of living there.

postcode search and not very accurate, so take the cheap insurance out and enjoy the new house.

going straight to search insurance without doing the main search first is not ideal as feedback is usually that clients want to know if they might get a knock on the door and that their property is possibly affected. insurance covers over the problem for later, and insurance is often (not in Richard Webster's case I hasten to add) an unnecesary port of call for the less well trained conveyancers who have no legal common sense.

Geenie

I believe that the laws on Chancel Repairs are going to change by October 2013, and that if the Church has not registered an interest in certain properties to the Inland Revenue to continue this liability, they will no longer be able to make any claims against the occupiers.

I think it would be interesting to know if this is still going ahead, and how the owner of a property under this cloud at present can know if the church has staked a claim, ie is there a register people can access?

Richard Webster I am sure will know.

flora48

I have recently bought 2 houses and took out Chancel Liability Insurance on each, one with sucessor cover for £25 and the othe for £14 without sucessor cover. I think it is down to the buyer, after all the sums are ****** all in the whole purchase process.