Insurance against house buying fees if gazumped

worriedmam

My son has just been gazumped on the house he had an offer accepted on. Luckily, it was fairly soon into the house buying process so he didn't incur any costs. I understand there is insurance you can buy which will cover house buying expenses incurred if the sale falls through. Which insurance companies provide these policies? thanks for any advice anyone can offer.

monty-doggy

My conveyances offered it. The fee was £50

worriedmam

Thanks very much for your quick response. I wasn't sure if this was something my son should take out before appointing the conveyance solicitor but it looks like he should wait and see if he is offered it by his solicitor. If his solicitor doesn't offer it- how could he take out this sort of policy?

TrickyDicky101

I'm pretty sure what monty-doggy is talking about only covers the conveyancer's fees - it won't cover mortgage fees, disbursements etc etc.

worriedmam

Are there any policies which cover the other costs too?

hamster2013

mortgage is offered on an amount - and is usually valid 3-6 months, so it doesnt really 'need' covering - depending on how active the market is and how strict the criteria's are for your son.

the valuation fee's are not something that would be coverd either imho - as they would be property specific.

unfortunately - the uk market is such that the 'mans word' is not worth anything - and the law does permit these tactics
many countries legally bind a sale at offer acceptance - not allowing either party to widraw without incurring financial loss.

but think of it the other way round - if your son got cold feet - he can do the same to the seller

Errata

Tesco used to do gazumping insurance, don't know if it still does.

nomoneytoday

When I was offered this by an EA, I found that the insurance then tied you to use a specific service provider for the "next house" if the first one failed..