Restrictive Covenant - Indemnity insurance

yu2829

Hello All,

I need your advise as quick as possible

Iam looking to buy a property in the Hampshire.

I was not made aware any Restrictive Covenant while negotiating the price of the property. And made me aware only when they have sent me the contract.

My solicitor has sent me the documents specifing there is Restrictive Covenant & Seller has provided the Indemnity Insurance to cover me against any possible claims arising as a result of Convent.

Restrictive Covenant : "Not at any time hereafter to cause permit or suffer to be done in or upon the property hereby conveyed anything which may be or become a nuisance annoyance danger or detriment to the vendor or the owners or occupiers of the properties adjoining the property herby conveyed but to use the same for the purpose of a Private Dewelling house only"

Above Restrictive Covenant made in 1963.

Now the developer has built the Semi-detached homes by demolishing the existing property.

Being me first time buyer, I'm scared to go ahead to buy the property, being Restrictive Covenant.

Your valuable suggestion would be great.

I have asked many people about this & said this is quite common for the homes older than 40 years & also advised me to go ahead to buy the property, as such Restrictive Covenant Indemnity Insurance in place & I'm covered for any risk.

Do i need to consider to buy this property, as developer has breached what is there in Charges Register????

Thanks

McBozo

hmm, house I'm selling has something similar, house I'm buying has something similar...

I think this type of covenant is pretty common, not sure why you would need an indemnity because they have built houses on it. are you sure thats what the indemnity is for?

i think its absolutely ok to buy.

yu2829

Many thanks Mcbozo...

Im sure the Restrictive Covenant Indemnity Insurance for the "Not at any time hereafter to cause permit or suffer to be done in or upon the property hereby conveyed anything which may be or become a nuisance annoyance danger or detriment to the vendor or the owners or occupiers of the properties adjoining the property herby conveyed but to use the same for the purpose of a Private Dewelling house only"

As such this is clearly defined in the Restrictive Covenant Indemnity Insurance policy with number of the clause in the Charges Register.

I believe the Restrictive Covenant made in 1963 involves 3 parties.

Previously there was only one house build, which was demolished & built 2 Semi detached homes. As the Restrictive Covenant says to use the same for the purpose of a Private Dewelling house only.

Developer has procured other land adjacent to the property & built total of 10 Semi Detached Homes.

I believe that might be the reason, why restrictive Covenant Indemnity Insurance policy has been placed.

your further suggession on this please

Many thanks

drdpj

That covenant is about annoying the neighbours, it doesn't seem to be about building new houses on the plot?

The question with any covenant is, who is likely to enforce it? (to enforce it they'd have to have the benefit of it - something like adjacent land - and they'd have to take you to court and request damages against you. Strikes me as very unlikely. Anyway, the indemnity should cover the costs associated with it if anyone attempts to enforce it... Personally I wouldn't worry about it.

Furthermore, it's also about not building a factory or something on the plot. Worrying about having two houses where once there was one is really getting pernickety and I'd guess that wording is rather open to interpretation in this instance... They're both private dwelling houses, not hotels

cattie

Pretty standard covenant put in place by builders who are considerate enough to think of neighbours in perpetuum.

If you're thinking of becoming a very noisy or troublesome neighbour, then look elsewhere to buy, otherwise it's an ideal covenant to have tied to property.

patman99

Was the R/C in place on the property that was demolished in order to build the new ones?. If so, it may not be enforceable anyway. Only the person/company who placed the R/C can enforce it.

yu2829

Hello cattie / drdpj,

Many thanks for ur reply

Obviously I'm not a very noisy or troublesome neighbour.

I going ahead to sign the contract. Im very much satisfied with your replies / clarification

Many many thanks

yu2829

Hello patman99,

What do you mean by R/C ????

G_M

yu2829 wrote: »

Hello patman99,

What do you mean by R/C ????

Errrrrr.... is this thread not ablout a .... Restictive ummmm ... Covenant....?

my guess is that patman99 meant...... umm...oh, I dunno actually!

yu2829

Hello,

If R/C means Restrictive Covenant, then answer is Restrictive Covenant is in place before demolition.

As such Restrictive Covenant Indemnity Insurance policy dated 2012

Thanks