Property indemnity policies

gazh1980

So, we're at the stage where exchange and completion is imminent. We have An email from our solicitors yesterday confirming our buyers solicitors require a further 2 indemnity policies!

The policies are for exception of mining and minerals for over £100 and an issue regarding access to the rear of our property.

What concerns me (other than the convenient timing) is the fact we've already agreed to pay for a further indemnity policy regarding access to the rear of our property for £75 only a few weeks ago, this policy which seems to me to be for the same thing other than the fact we have to sign a document is over £100!

So another £200+ over budget which is already stretched due to works needing completing on new property...

Anyone else think this is naughty? Or is waiting until the last minute to spring over inflated policies onto customers normal practice?

G_M

Call their bluff?

Remember the buyers have presumably paid for a survey, for a mortgage application, for solicitors, for legal searches.....

If their purchase falls through, thy will be seriously out of pocket.

Tell them to Exchange contracts of find another property.....

they can always buy the policy themselves if they want it.

gazh1980

I've got back onto our solicitors, they have flat out told buyers we are not paying for the mining search, the risk is minimal.

The access policy apparently was quoted incorrectly previously, it should be £126 not £75 as originally quoted...again seems fishy to me but then maybe I just have a suspicious mind!

gazter

I suppose calling their bluff will work as long as it isn't the lender insisting on the indemnities.

G_M

gazter wrote: »

I suppose calling their bluff will work as long as it isn't the lender insisting on the indemnities.

Couldstill work. Yes, lender may insist on the policy, but they won't care who pays for it.....

(as long as it isn't themselves...)

gazh1980

is actually the buyers solicitors insisting on this not lenders

Richard_Webster

Is the property in a mining area?

I assume that you are referring to a note on the title that the mines and minerals below 200 feet (or something like that) are excepted from the title. It was common years ago for land to be sold with this exception, even in areas such as where I am in Hampshire.

If it isn't a mining area then your solicitors should tell the buyer's solicitors not to be silly.

is actually the buyers solicitors insisting on this not lenders

Although it could well be in his case that the request is unjustified the distinction between a lender's requirement and that of the buyer's solicitors is not understood by most.

Lenders lay down quite detailed technical legal requirements in the CML Handbook. These are not in mortgage offers and the average person in a lender's branch office won't have the first clue about them so it is no good asking them.

Nevertheless lenders require the buyer's solicitor to check lots of legal stuff and, if appropriate, to request indemnity policies etc.

Even though the lender won't generally check the details itself, if later on it is discovered that the solicitor acting for it (generally the same one as acting for the buyer) did not check some point then he may get sued and perhaps removed from the lender's panel of solicitors.