Covenant problem

bumblebee5

We bought a house 5 years ago, with a small two storey extension attached at the rear. The property was built 7 years ago, with one previous owner, who had the extension built after they had purchased the property. Planning/building regs etc all passed, we have the certificates.

Althought there is a covenant attached, our solicitors on the purchase (5years ago), made no mention of any breach of covenant to us. Now we are selling the property and are having problems because we have no proof of permission from the covenant.

We have been told an indemnity insurance is the way ahead, but are still not sure what this covers and why, and should we have been notified of it when we bought the house?

Many thanks

cabbage

There was a covenant in ours when we bought it. It was two years old and the covenant said the owners had to get the builder's permission to build at the property within the first 3 years. They added on a conservatory. I asked them to get the builders permission for the extension. It cost them around £25 to get a letter to this effect. Your original solicitor made an error by not covering this. Go back to them, make a formal complaint and ask them to pay for the indemnity insurance or rectify it by getting permission.

to find out what the covenant is saying, dig out a copy of the deeds from when you bought or ask the solicitor for the current copy (office copy entries) and s/he will be able to explain what its about and why its needed.

Yorkie1

It may be that your previous solicitor did make an error, but only if you can show that they knew there was an extension and thus that the covenant had been breached. They did not see the property, and thus wouldn't necessarily make a connection between the covenant and what was on the ground. Did the surveyor's report mention the extension?

PasturesNew

Over the years solicitors have got tighter and tighter on what they will pass and what they'll flag up as an issue. I'm not surprised your previous solicitor didn't mention it.

Richard_Webster

Possibly your solicitor should have picked it up but not if it wasn't obvious to him that there had been an extension.

An indemnity policy is not that expensive so just agree to pay for one and get on with the sale.

goldbyron

Yes - go for the indemnity - it covers you, its cheap and its quick....job done.

timmyt

bumblebee5 wrote: »

We bought a house 5 years ago, with a small two storey extension attached at the rear. The property was built 7 years ago, with one previous owner, who had the extension built after they had purchased the property. Planning/building regs etc all passed, we have the certificates.

Althought there is a covenant attached, our solicitors on the purchase (5years ago), made no mention of any breach of covenant to us. Now we are selling the property and are having problems because we have no proof of permission from the covenant.

We have been told an indemnity insurance is the way ahead, but are still not sure what this covers and why, and should we have been notified of it when we bought the house?

Many thanks

Depends on the quality of conveyancer who acted for you. Did you go cheap? Cheapos may not study the papers as hard, or know what to spot, so that may be how it happened, but this does not excuse the fact that they may have made a mistake.

Did they know about the extension - you imply that planning was supplied - and the Local Authority search would have shopwn a planning permission anyway, so it sounds like they have been caught out.

Conveyancers now have Google street view so it makes it harder for a lawyer to say 'I didn't know'.

Then again, are you going to sue them over a £200 policy, unlikely, and their file may say they told you....did they send you a written REport on the paperwork when you bought. Most decent lawyers do. That shoudl say what they knew. It may be they saw the breach but the Seller would not offer a solution when you bought...so many what ifs.

Just pay it and get the proeprty sold.

bumblebee5

Thank you for all your info - indemnity paid for and we have exchanged!! Thank you to everyone who contributed.