Title Insurance do we need it.....

nightsky224

We are about to sign the contracts and just wanted advice on some insurance that our solicitors have recommended.

They have said it will cost about £200 - one off payment (Property worth 240k) and will cover us if there are any unforeseen defects in title (ie Fraud, seller not legal owner, Missing title info, boundary disputes etc)

My question is do we need it....??

We are already paying about £50 for chancel repair insurance and £180 for Restrictive covenant insurance (there is a restrictive covenant on the land but not record of what it is..) And really don't want to pay out more unless we need to, this house buying lark is costing us a fortune!!!

[Deleted User]

I would have expected the Solicitor as part of his conveyancing work to have made sure that there are no defects in the title ...
But my own experience is admittedly very limited. Hopefully somebody with greater knowledge can give a more expert opinion.

nightsky224

Sleazy wrote: »

I would have expected the Solicitor as part of his conveyancing work to have made sure that there are no defects in the title ...
But my own experience is admittedly very limited. Hopefully somebody with greater knowledge can give a more expert opinion.

We hope so too! But don't know enough about the insurance really, has anyone else got it?

G_M

Are you using an online call centre based mass produced conveyancing outfit? .....

Your solicitor should be checking the Title is sound and should not let you buy if it is not. Unless he has found something uncertain that gives him cause for concern (in which case he should be explaining this risk to you very clearly!) this insurance is unecessary. (but earns commission for the conveyancing firm......?)

It is possible you are buying an unregistered property (ie one that has not been bought/sold for 30+ years so is not registered with the Land Registry) and the conveyancer therefore has to rely on paper Deeds going back many years, someof which may be missing. But as I said, if this is the case, he should be explaining to you...

Ask him for a clear explanation of why there is a risk to the Title, and why the insurance is required.

nightsky224

G_M wrote: »

Are you using an online call centre based mass produced conveyancing outfit? .....

Your solicitor should be checking the Title is sound and should not let you buy if it is not. Unless he has found something uncertain that gives him cause for concern (in which case he should be explaining this risk to you very clearly!) this insurance is unecessary. (but earns commission for the conveyancing firm......?)

It is possible you are buying an unregistered property (ie one that has not been bought/sold for 30+ years so is not registered with the Land Registry) and the conveyancer therefore has to rely on paper Deeds going back many years, someof which may be missing. But as I said, if this is the case, he should be explaining to you...

Ask him for a clear explanation of why there is a risk to the Title, and why the insurance is required.

No they are a reccomended firm that has wsorked well so far. It was mentioned in the title report some time ago but think you are right I will go back and ask questions. Its so overwhelming house buying wish it was simpler!!

Thank you for your help
x

pete1717

nightsky224 wrote: »

We are about to sign the contracts and just wanted advice on some insurance that our solicitors have recommended.

They have said it will cost about £200 - one off payment (Property worth 240k) and will cover us if there are any unforeseen defects in title (ie Fraud, seller not legal owner, Missing title info, boundary disputes etc)

My question is do we need it....??

We are already paying about £50 for chancel repair insurance and £180 for Restrictive covenant insurance (there is a restrictive covenant on the land but not record of what it is..) And really don't want to pay out more unless we need to, this house buying lark is costing us a fortune!!!

This policy is fairly new and is offered to protect you against, for example, fraud by the seller, and is a Policy that Conveyancers are advised to offer. In fact, Conveyancers can be held to be negligent if they dont offer this to their Client.

The Policy is optional and you dont have to take it out.

& this is only the start of indemnity policies for " unforseen circumstances" Before long we will have policies to protect you against japanese knotweed, climate change etc. & your report when you purchase a property will just go on , and on , and on and on ...................

the whole situation is becoming ridiculous

nightsky224

pete1717 wrote: »

This policy is fairly new and is offered to protect you against, for example, fraud by the seller, and is a Policy that Conveyancers are advised to offer. In fact, Conveyancers can be held to be negligent if they dont offer this to their Client.

The Policy is optional and you dont have to take it out.

& this is only the start of indemnity policies for " unforseen circumstances" Before long we will have policies to protect you against japanese knotweed, climate change etc. & your report when you purchase a property will just go on , and on , and on and on ...................

the whole situation is becoming ridiculous

we decided to not go for it in the end. Hope I don't regret it but it felt unnecessary! We have exchanged now :-) so not long until we get the keys!!