Is chancel repair liability insurance really compulsory??!?

G_M

ValHaller wrote: »

My realisation of tonight is that because it is still open season for registration of CRL for another 25 years on any house which has not been sold since this month, there is a residual risk of registration in the period between title searches and completion. I think OP's insurance quote of £15 is about right for that level of risk

But you can remove this risk with a priority search.

Besides updating the details of a previously obtained official copy of the
register, as explained in section 2 Introduction, a priority search has the
effect of ‘freezing’ the register. This ensures that no adverse entries are made
in the register during the priority period granted under the official search
certificate. - See more at:
http://www.landregistry.gov.uk/professional/guides/practice-guide-12#sthash.Eut0S6ih.dpuf

So assuming the Priority Search shows no CRL, the Register is frozen until Completion (as happens anyway to avoid last minute mortgages being registered!), and after Completion no CRL can be registered.

ValHaller

G_M wrote: »

But you can remove this risk with a priority search.




So assuming the Priority Search shows no CRL, the Register is frozen until Completion (as happens anyway to avoid last minute mortgages being registered!), and after Completion no CRL can be registered.

You would like to think so. This needs the Land Registry rep. Because I suspect that a priority search either may not prevent the Ecclesiatical Authorities from exercising their legal right to register CRL or will merely postpone it until the priority search expires.

Of course, the Ecclesiasticals could undertake to respect any priority search, but as I understand it, they have a considerable financial interest in the insurance which was probably the unwritten part of the agreement to bring an end to CRL. And they are not going to overturn the tables in their own temple are they?

HAMISH_MCTAVISH

Again, even if no claim has been registered, this may not mean you're "safe".....

The assumption has been made that since that date, new owners of land are only bound by chancel repair liability where it was already entered on the Title Register database kept by the Land Registry.

Doubts about this have been expressed by the Law Society of England and Wales in its 2006 Submission to HM Government (see footnote 18 on page 9). (The reason is that it is unclear that a Parochial Church Council's right to claim all or part of the cost of repairs to the chancel from a lay rector is actually an interest in the lay rector's land, and no change has been made to the Chancel Repairs Act 1932 to give a lay rector a defence to a claim under the Act based on non-registration). Only interests in land require registration at the Land Registry.

miss_undastood

It all seems a big con to me and can't do the reputation of the church any good.

It feels as if it is insurance created by solicitors to cause concern. As the insurance is relatively cheap you know that not many policies can ever pay out else the insurers are losing money

Running_Horse

Imagine if you bought a house and were liable for repairs to the local mosque, synagogue, or temple. That the greedy church reserve the right to impose this unfair charge on people who will never set foot on religious premises tells me everything I need to know about churlish priests. Is this not the next PPI style mis-selling scandal? What a con. Shame on the Church of England.

kirstym100

I can't quite believe your conveyencer was asking £300!! Mine said in the region of £60, IF I wanted it.

Richard_Webster

Quote:
Originally Posted by ValHaller View Post
My realisation of tonight is that because it is still open season for registration of CRL for another 25 years on any house which has not been sold since this month, there is a residual risk of registration in the period between title searches and completion. I think OP's insurance quote of £15 is about right for that level of risk
But you can remove this risk with a priority search.


Quote:
Besides updating the details of a previously obtained official copy of the
register, as explained in section 2 Introduction, a priority search has the
effect of ‘freezing’ the register. This ensures that no adverse entries are made
in the register during the priority period granted under the official search
certificate. - See more at:
http://www.landregistry.gov.uk/profe....Eut0S6ih.dpuf
So assuming the Priority Search shows no CRL, the Register is frozen until Completion (as happens anyway to avoid last minute mortgages being registered!), and after Completion no CRL can be registered.

I agree completely with this.

Now the risk is only there for people who haven't bought since 13/10/13 - i.e. most of us. So those selling the insurance now have to concentrate on trying to frighten existing property owners.

As for asking a mortgage lender about it, forget it - they simply will not understand the technicalities.

G_M

Richard_Webster wrote: »

I agree completely with this.

Now the risk is only there for people who haven't bought since 13/10/13 - i.e. most of us. So those selling the insurance now have to concentrate on trying to frighten existing property owners.

As for asking a mortgage lender about it, forget it - they simply will not understand the technicalities.

Hi Richard. So to clarify:

1) for new purchases which Complete as from 13/10 either
* CRL is already registered on the Land Reg Title - in which case you can insure against a Chancel claim
* or a Priority Search shows nothing registered, in which case insurance is not needed (unless you delay Completion till after the Priority period has expired (which would be daft since you'd presumably do a 2nd Priority Search)

2) for properties which have not yet changed hands, the current owners remain at risk

Out of interest would such insurance actually pay out where CRL is registered on the Title, or is it similar to Indemnity insurance for lack of Planning, where it is invalid if you have notified the council?

phoebe1989seb

miss_undastood wrote: »

It all seems a big con to me and can't do the reputation of the church any good.

Running_Horse wrote: »

Imagine if you bought a house and were liable for repairs to the local mosque, synagogue, or temple. That the greedy church reserve the right to impose this unfair charge on people who will never set foot on religious premises tells me everything I need to know about churlish priests. Is this not the next PPI style mis-selling scandal? What a con. Shame on the Church of England.

You can't tar all parochial church councils with the same brush though........

Ours (in the Wilts village where we purchased two years ago) recently announced that they so objected to the whole idea of pursuing the local residents - church-goers and non-church-goers alike - for this unfair liability, thinking it both unchristian and potentially damaging to the church's reputation, that they have successfully appealed to the Charity Commissioners (on both legal and social grounds) for exemption from pursuing villagers :D

I'm sure they can't be the only parochial church council to do this........

Richard_Webster

Out of interest would such insurance actually pay out where CRL is registered on the Title, or is it similar to Indemnity insurance for lack of Planning, where it is invalid if you have notified the council?

You would have to declare this to the insurer when applying for the policy and the premium will be higher as a result. Might not be insurable if it was known locally that an old church nearby needed repairs to its chancel.