no building regulations - indminty insurance who pays?

topcat007

Hi everyone,

If there is no building regulations whos respoisblity is it to buy the indemnity insurance the seller or the buyer?

Many Thanks

pmlindyloo

topcat007 wrote: »

Hi everyone,

If there is no building regulations whos respoisblity is it to buy the indemnity insurance the seller or the buyer?

Many Thanks

Usually the seller but if they refuse and indemnity insurance is required by the buyer's mortgage lender before they lend any money then the buyer might have to bear the cost.

http://www.financenet.org/building-indemnity-insurance/

PasturesNew

No real responsibility - it's the one who backs down first .... usually the seller will pay as they don't want to lose the sale. But if they're arrogant then they might just suggest the buyer pays for it.

topcat007

Thanks both i was reading everywhere that it was the seller so was unsure why my solicitor was infering it will be to pay the cost.

Will raise with them and see if cost can be passed on to seller

stator

Often the seller will pay because if it falls through the next buyer will probably ask for one too.
Your could try and negotiate that the seller pays for it but you will reimburse at the point of completion. That way if it falls through you don't have to pay. But they can refuse that too.

lincroft1710

I'd be worrying about why the property has no building regs certificate rather than who is going to pay for a fairly useless indemnity policy.

topcat007

lincroft1710 wrote: »

I'd be worrying about why the property has no building regs certificate rather than who is going to pay for a fairly useless indemnity policy.

All i can do really is get a full structural survey ?

Do the searches the solicitor does show any building regs ?

kingstreet

Vendor should be asked to seek regularisation first.

http://www.planningportal.gov.uk/buildingregulations/howtogetapproval/howtogetapproval/bcpresiteapproval/regularisation

eddddy

kingstreet wrote: »

Vendor should be asked to seek regularisation first.

http://www.planningportal.gov.uk/buildingregulations/howtogetapproval/howtogetapproval/bcpresiteapproval/regularisation

But bear in mind that vendors (and to a lesser extent buyers) often don't like the retrospective regularisation route, because...

- It can take a long time and be expensive
- It may be invasive (e.g. hacking plaster off walls etc)
- The works will be assessed against current regs (not the regs in force when the work was actually done)
- Once you apply for it (or even just enquire about it with the council) you've lost the option of taking out indemnity insurance


Whereas indemnity insurance is quick and cheap.

(So, for example, some people may prefer a structural survey plus indemnity insurance - rather than regularisation.)

DRP

eddddy wrote: »

- The works will be assessed against current regs (not the regs in force when the work was actually done)

I'm not sure this is true - our loft was regularised at the old regs!

Hoploz

I would also add that whether you are the seller or the buyer, both sides are likely to have to pay additional solicitors fees for dealing with it. My seller paid for the actual policy, but my solicitor charged something like £70 for dealing with it as they have to request it, read through the proposed policy and report back to buyer and lender on it. I would have complained but read the small print on the 'fixed fee' terms and there it was.