Is professional indemnity necessary for the buyer?

lazytomato

Hi guys,

I am in the process of buying my first property, we are hoping to exchange contract next week.

My solicitor has sent a drafted copy of the final statement, which had £270 charge on it for professional indemnity. This charge was not there at the initial quote that my solicitor sent to me. When I asked for clarification, they said that "this indemnity is in place to protect you should you wish to make a claim against us or the seller for misrepresentation."

When I googled professional indemnity 1) there is very limited information for the buyer, and 2) it appears that it is an insurance that every conveyancer should have anyway in order to practice.

I am researching in the wrong direction? Is it really necessary for me to pay my solicitor this fee as a buyer?

Thanks a bunch!

quotememiserable

It's a policy that professionals have in place in case they get pursued legally for failures in their work. For one thing, that sounds like enough for a full annual policy, and in any case, there's no way it should be passed on to the client. It provides protection for the solicitor, not for you. I'd say no thanks, and point out it's not in the agreement anyway.

eddddy

lazytomato wrote: »

Is it really necessary for me to pay my solicitor this fee as a buyer?

It sounds like a dirty trick, by a dodgy firm of solicitors.

This company's blog mentions that some firms do this and bury details of the fee deep in their T&Cs.

https://www.fridaysmove.com/property-law-blog/conveyancing-insider/04/05/2011/conveyancing-fees-contribution-professional-indemn

... and they don't sound too impressed by it.

(Just to be clear, I don't know the company in the link above and I'm not recommending them.)

I guess you need to read your solicitor's T&Cs to see what they say.

If the T&Cs aren't clear and/or you feel strongly, you can complain, as described here:
https://www.lawsociety.org.uk/for-the-public/using-a-solicitor/complain-about-a-solicitor/

... but you may have to pay under protest first, or you solicitor might refuse to complete.

lazytomato

quotememiserable wrote: »

It's a policy that professionals have in place in case they get pursued legally for failures in their work. For one thing, that sounds like enough for a full annual policy, and in any case, there's no way it should be passed on to the client. It provides protection for the solicitor, not for you. I'd say no thanks, and point out it's not in the agreement anyway.

eddddy wrote: »

It sounds like a dirty trick, by a dodgy firm of solicitors.

Thank you both! I emailed them and asked them to remove it which they did. Thanks very much!

davidmcn

lazytomato wrote: »

I emailed them and asked them to remove it which they did.

Hmm. Sounds like an admission by them that it's a completely meaningless way of bumping up their bill!

G_M

It's the same as when you buy a new suit, or a dress, from John Lewis.


You pay the advertised price for the clothes, then they add on VAT, and an amount to cover the buildings insurance on their store, their utility bills, and a bit extra to pay the CEO his annual bonus.


Yes, really, they are being cheeky on that scale - it's an overhead of running a conveyancing business!

Davesnave

G_M wrote: »

It's the same as when you buy a new suit...from John Lewis.

Not sure I'd fancy my solicitor taking my inside leg measurement.

"Hmmm, this CON29DW looks a little vague around the stopcock, sir, and your manhole is definitely non-compliant. I may have to seek an easement."

Nope, doesn't bear thinking about!

G_M

Davesnave wrote: »

Not sure I'd fancy my solicitor taking my inside leg measurement.

"Hmmm, this CON29DW looks a little vague around the stopcock, sir, and your manhole is definitely non-compliant. I may have to seek an easement."

Nope, doesn't bear thinking about!

Yeah but my solicitor is not just good..... she's HOT!