Legal issue when selling - beware!

JennyW_2

rob.jarvis wrote:

It didn't need PP or BR but did require developer permission. My solicitor obtained retrospective approval at the time of purchase, didn't cost anything.

My argument is it seems unfair that I should pay for something for which I get no benefit. The buyer's solicitor gets covered in case of future litigation from the new owner.

the benefit you get is that you'll sell your house!

rob.jarvis

I don't see selling the house as a benefit of buying insurance for somebody else.

I see things plainly - I pay for something, I want something directly in return.

It may seem I'm being stubborn here but I've been made to feel a victim because the previous owner had the conservatory built, not me.

matto

Nothing wrong with being the stubborn provided you prepared for the consequences. I'm sure most of these indemnity schemes are a con and the solicitors get a hefty chunk of commission. Tell the buyers you're not paying for the insurance and the house will be back on the market tomorrow.

MissMotivation

If you EVER want to sell the property then you will have to pay for the indemnity insurance as this will crop up everytime you come to sell.

tonyivb

When we sold our flat the buyer was concerned that we had knocked through the partition wall between the toilet/bathroom and put a door between the kitchen & lounge.

All these works were approved by the management committee/freeholder, but they still bought an indemnity insurance for peace of mind.

I guess the moral of the story is that if they want it badly enough they will buy it themselves, but if they pull out then you will have to declare this issue to any future buyer and go through the whole saga all over again.

BobProperty

MissMotivation wrote:

If you EVER want to sell the property then you will have to pay for the indemnity insurance as this will crop up everytime you come to sell.

Why should the OP buy a policy if the conservatory never needed PP or BRegs approval?

tifnstav

It might not actually need PP or Bregs approval, it depends on the size for one (as matto explains above) and the safety aspects of the conservatory, such as the type of glass used and whether it has closing doors leading to the rest of the house.
Tell your solicitor about the dimensions etc and whether it has closing doors and so on (if they haven't already asked you, which I would have done - its your Solicitors job to make prudent enquiries after all) and ask if they could argue the case against indemnity insurance based on the fact that it may not even require building regs or planning permission.
At least you have consent from the developer, which hardly anyone ever gets!

silvercar

OP is saying why should they pay for something they didn't build. By the same token why should the buyer pay for something they didn't build.

When we bought our house there were loads of covenants dating back to 1937 when the house was built. As it was so long ago there is no way the original developer could now come knocking at the door and prove he is sustaining a loss be the actions that have taken place to the house, so we just ignored them (on our solicitor's advice). Not all buyer's solicitors will be so pernickedy, but for the sake of getting the sale completed, I would pay £200 for an indemnity. Could well cost you that in further interest payments or possibly further legal costs in the long run if your buyers pull out.

stratford_2

When I bought my current property the vendor paid for the indemnity insurance - they had no problems doing so and neither will I (assuming that it is still needed) when I come to sell.If you feel strongly that you shouldn't pay then don't! The buyer may pay for it as they'll have forked out already for a number of fees, but they may also may take a similar stubborn approach. All probably depends on the state of the market - could you easily resell at the same (or higher) price? Does the buyer have other choices?