No title guarantee

IW1963

Hi i am in the process of buying a property which has been previously part of bankruptcy proceedings at the last hurdle I have been informed that the property comes with NO TITLE GUARANTEE.

1. Can I do anything about this.

2. Someone has mentioned Indemnity Insurance.

Has anyone got any idea of the cost and and general advice

jimmy230

It depends on the reason why there is no title guarantee. If the property was repossessed the bank, the bank would not be in a position to give any kind of guarantee because it did not occupy the property.

Your solicitor should still investigate the title to the property and identify any areas of concern. The results of that investigation will be disclosed to an insurer who will base the cost of their premium on the level of risk. Often this kind of insurance is not all that expensive, often £100-£200, however, but that will depend on the risk involved.

G_M

Read this thread.

jimmy230

Although I agree that title guarantees are worth little 'in the real world', you will find that virtually all lenders will insist on insurance if you need a mortgage over the property.

Richard_Webster

Although I agree that title guarantees are worth little 'in the real world', you will find that virtually all lenders will insist on insurance if you need a mortgage over the property.

Where do you get that from? You are not confusing quality of title (e.g Good Leasehold or Possessory as opposed to Absolute) with title guarantee are you? They are not the same thing.

Lenders don't care as long as the borrower gives a full title guarantee to them