Indemnity Insurance

LeoTLion

We're in the process of selling a house and the buyers solicitor has raised a query relating to an unknown rent charge. Having spoken to our solicitor he has informed us that there is something in the original deeds of sale dating back to the 1920's which enables some named individuals to collect an annual fee from the land.

This was not picked up by our solicitor when we purchased the property 4 years ago (new build) and we are being asked to provide a draft indemnity insurance policy for approval by the buyers solicitor.

Our solicitor has gone away to get an estimate of costs for this, but indicated it could be up to £200.

Has anyone experienced this situation when selling and are there alternatives?

Surrey_EA

It would seem, at least in my experience, that nearly half of all sales require an owner to obtain an indemnity insurance policy to cover something or other.

It's partly a reflection that solicitors are increasingly cautious about "taking a view" on problems that come up, especially where a mortgage lender is concerned.

My advice would be to cough up the £200 and move on, as unpalatable as that may be.

G_M

Surrey_EA wrote: »

My advice would be to cough up the £200 and move on, as unpalatable as that may be.

I disagree.

See my comment in this thread:

https://forums.moneysavingexpert.com/discussion/5308897

Surrey_EA

G_M wrote: »

I disagree.

Fair enough

G_M wrote: »

I suspect that for every 100 policies sold by the insurance companies, they pay out on claims exactly: 0.

Completely agree.

However, it's the solicitors in their capacity as acting for mortgage lenders that are insisting on these policies, and I wonder how much difference buyers and sellers kicking up a fuss will make.

G_M wrote: »

it is outside the 12 year period for Building Regs enforcement

Is it really as long a period as that? My admittedly failing memory told me it was more like 2 or 4 years for building regs, but I'm probably wrong.