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. What can I do about this.

2. Someone has mentioned Indemnity Insurance.

Has anyone got any idea of the cost and any general advice of ways to get around this issue.

Flat_Eric

IW1963 wrote: »

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. What can I do about this.

2. Someone has mentioned Indemnity Insurance.

Has anyone got any idea of the cost and any general advice of ways to get around this issue.

I presume when you say that the property you are buying is previously part of bankruptcy proceedings, you mean that one of the registered proprietors is bankrupt and that the property is being sold by the bankrupt's trustee in bankruptcy.

In answer to your first question, the property is no doubt being sold because the bankrupt can't buy his trustee out. I.e the only option is for the property to be sold. As the trustee in bankruptcy has never lived in the property and is acting without personal liability, it is not unusual for the property to be sold with no title guarantee because quite simply, given the trustee's very limited knowledge of the property - he probably hasn't even been there, he can't guarantee the title to it thus no title guarantee is what is offered. I suppose its a kind of take it or leave it situtation. Does the price reflect the no title guarantee offered ?

What does your solicitor say about it ?

It might be possible to get indemnity insurance - this would be something your solicitor would investigate for you so I would have a chat with him/her.

IW1963

Thanks Eric for that.Your spot on with assessment of the situation.

The price doesn't really reflect the lack of guarantee.

Is there anything else I can do to protect myself if there is a problem with the title guarantee?

Also have you any idea what the cost of the idemnity insurance would be.

G_M

Are you doing the conveyancing yourself? If so I'd say this is a case where it's inadvisable. If not, your conveyancer will answer your questions.

IW1963

Not doing conveyancing myself,my solicitor says I should be ok but he is not 100% sure thats why I considered insurance

Flat_Eric

IW1963 wrote: »

Thanks Eric for that.Your spot on with assessment of the situation.

The price doesn't really reflect the lack of guarantee.

Is there anything else I can do to protect myself if there is a problem with the title guarantee?

Also have you any idea what the cost of the idemnity insurance would be.

can't advise you on cost I am afraid. The cost will depend on the circumstances (price you are paying amongst other things) and your solicitor will need to make contact on your behalf. Ask him to find out for you.

You can also have a chat with the land registry about what it means - to have no title guarantee - they are usually quite helpful

Kohoutek

No title guarantee means that if you have difficulty with the title after completion, i.e. a third party produces evidence of some kind of legal interest over the property, you cannot recover damages from the seller.

Richard_Webster

Hoary chestnut again.

Title guarantees are worth very little in the real world so rarely any point getting steamed up about the lack of them. See this thread:

https://forums.moneysavingexpert.com/discussion/2910970