About To Exchange, Now This....

Jackop

Hi all,

Just wondering if I could pick your brains for a moment.

We are just about to exchange on a house, we were hoping to complete this friday (Fat chance). We are 1st time buyers, our vendor is moving to a property where the owners are moving out to a rented property. So its a very small chain with only 3 people in it and only 1 of those is actually buying and selling.

I asked for an update from our sols and he has had a reply from our vendors sols. In answer to his question 'is it a yay or nay for friday?' she answered with this:

'Its a maybe still unfortunately. I require a FENSA Certificate and a CORGI Cert on our related, which can have an indemnity if cant locate, they have not as yet responded to my enquiry.'

My question is, what is an indemnity and if they cant find these certificates how long will it put on my purchase?

Thanks all

POPPYOSCAR

Jackop wrote: »

Hi all,

Just wondering if I could pick your brains for a moment.

We are just about to exchange on a house, we were hoping to complete this friday (Fat chance). We are 1st time buyers, our vendor is moving to a property where the owners are moving out to a rented property. So its a very small chain with only 3 people in it and only 1 of those is actually buying and selling.

I asked for an update from our sols and he has had a reply from our vendors sols. In answer to his question 'is it a yay or nay for friday?' she answered with this:

'Its a maybe still unfortunately. I require a FENSA Certificate and a CORGI Cert on our related, which can have an indemnity if cant locate, they have not as yet responded to my enquiry.'

My question is, what is an indemnity and if they cant find these certificates how long will it put on my purchase?

Thanks all

http://www.astlepaterson.co.uk/FensaArticle.htm
"f you are unable to supply a FENSA Certificate or the appropriate building regulation approval when you sell your house it will be regarded as a defect in title by the buyer’s solicitor. This may mean that you have to pay for an indemnity insurance policy on completion which will protect your buyer and his mortgage lender against the risk of the property being down valued because the necessary paperwork is not in place."

Best to ask your solicitor how long it will take.

Jackop

Thanks Poppyoscar, I have asked my solicitor and waiting for a reply. I just hoped someone on here might have had experience with it too.

Im really hoping it doesnt take too long if it did come down to it.

hamster2013

i had the fensa issue as well - i ordered it online, cost £12
i assume, that your vendor's solicitor is requesting that from the vendor who is moving into rental - so you have not much say in this
what you can do is call up your vendor and tell him that fensa is no issue - as long as they can locate it online on the website, and he can then instruct his solicitor to stop chasing for that and that he will order it. Obviously, his solicitor is not only acting on his behalf, but most likely on the lenders behalf too - so will depend on his mood.

An indemnity policy is like an insurance, to protect you against an unknown, and only that unknown, and only in the scenario that someone pursuits you for it.

I had to get 2 indemnity policies done:
1. my vendor had not got a building reg certificate after changing his boiler - so got that done in the scenario that the council pursuits me
2. my title deed had a covenant that no one could locate - so got an indemnity policy on that too

both together cost around £150

hamster2013

p/s: from experience of living a horrible friday - i have realised its best to keep exchange date and completion dates on thursday or wednesday - that allows to have a working day following that day incase something slips - to avoid having to wait the full weekend to next monday at the best.

yorkshire_terrier_owner

I had to purchase an indemnity policy in place of a FENSA certificate for windows I had had replaced in the property I recently sold. I just instructed my solicitor to purchase it on my behalf at exchange/completion and she forwarded it on to my buyer's solicitor. My understanding is that it is pretty instant and in my case didn't hold up exchange whatsoever. Sounds like the hold up is the sellers looking for relevant docs or lender has to approve them. Either way someone somewhere isn't being very quick about responding.

Jackop

Thanks all, I will let my solicitor know about the fensa issue, as stated they are waiting for a corgi one too (bit out of date I think hasnt it been gas safe for a few years now?)

I think its the people at the top moving to rented who are holding it up, my guess throughout the process is that they wouldnt be hurried up. Theres not really much I can do as hamster said as its a step away from me. My work on our side of the purchase was completed about 2 weeks ago now, its agonising!

Unfortunately our vendors are teachers so w may be stuck with a Friday completion due to school, I wouldnt want any kids losing their teacher for a day tbh.

hazyjo

My vendors were meant to organise two indemnities (one wall, one for FENSA cert) - but didn't. My solicitor ended up sorting and they agreed to foot the bil for it. Was done within a day and we exchanged the next day.

Jx

Jackop

Thats what worries me now, the fact that they might not want to pay for it and waste time looking for these certs.

Also my solicitor told me last night that the 24th was off anyway. They cant book a moving van. Weird that they cant get one sorted with 2 days notice on what is probably the busiest moving day of the year!!

mrsmchapman

I had to also provide fenda indemnity and also a really stupid indemnity for something else. I agreed this straight away, the cost was minimal and nut worth holding up my sale for!

hamster2013

considering we are wednesday - if you REALLY want to complete on Friday and make most use of the long weekend to move, just call up your vendor and tell him you will pay for the indemnity policies - if he wants to instruct that to his solicitor to close the deal for this FRIDAY.
Obviously, the caveat is that you Close this friday.

I assume you have not exchange, as the completion date is legally binding on that - and any delay can incur penalty on the party delaying.