No search indemnity clause - making an offer

gigi7

Hi all

Apologies if this is in the wrong place, if so please let me know where I should go

I am currently considering making an offer on a property. The property went to auction last year and didn't sell, I am under the impression this is largely due to tenants not allowing viewings. There is a section 21 in place now.

I mention this, because after some searching I have obtained the legal documents from the auction website, land registry title plan etc. There is a document attached called a 'no search indemnity'. The only thing I can make sense of is that it's to do with insurance.

The wording means nothing to me unfortunately but what has stood out to me is 'adverse' mentioned A LOT.

It says things along the lines of 'the underwiters will indemnify the insured against an adversed entry'.

Whilst I have only skimmed it, as reading it in full would make no difference, I have jumped to the conclusion that this means there will be no cover against MAJOR issues? My mind straight away jumps to things like subsidence, and not being covered.

Can someone explain what this clause means?
I can't take this to the solicitor until after the bank holiday, but I was hoping to be ready with a decision by then.

Thanks all

SmlSave

It sounds like they haven't bothered to do a local land search. Is there one in the pack?

What council is the property in?

Also, are you a cash buyer?

rachel230

Taken from a free conveyancing site (can`t post link as not enough posts!)

Adverse Possession Indemnity Insurance
Adverse possession means that the owner of the property has only possessory title. This means that they have claimed ownership of some land but did not have necessary evidence to satisfy the land registry that they were the true owners. To receive possessory title they must have occupied the land for at least the last 12 years but until a further 12 years have elapsed it is possible someone with a better claim could take the land from them. This is why indemnity insurance is necessary for anyone purchasing the land. It will cover the purchaser against any financial losses suffered in the event that someone attempts to claim the land from them, including the costs involved in defending a claim.

Hope this helps!
Rachel

rachel230

Sorry - that`s just one type of indemnity = there are many for different situations.