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Buying House - Missing TP1 - Indemnity Insurance

Hello
I'm in the process of buying my first home, and I today received an email from my solicitor saying that the Transfer Deed, from when the house was sold from the developer to the current owner, can not be found and as a result they have offered indemnity insurance. They have asked me if I wish to proceed but have provided no real answers as to what this means or how it may effect me in the future.

Has anyone ever had any experience in a situation like the above?
Thanks!

Comments

  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    "Indemnity insurance" is an insurance policy that pays out the costs of legals arising from whatever - in this case, from a lost piece of paper.

    I assume that the property's registered with the Land Registry? If so, then the transfer from the previous to current owner shouldn't be required for proof of ownership - the registration does that. But you may need to give a bit more detail...
  • greatcrested
    greatcrested Posts: 5,925 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Provided the property is registered with the LR (with it's own title, not as part of a larger one eg the developer's land) then I don't se why a previous TP1 is needed.
    More info needed.
  • Hi Adrian
    Yes I've got a copy of the title deed, so it just appears they haven't got a copy of the TR1 and therefore can't provide details such as the rights/reservations and restrictions that would have been imposed etc. Having never seen one before I was wondering is it something I should be concerned about - is there typically items in there which could be a cause for concern if missed etc?
    Cheers
  • greatcrested
    greatcrested Posts: 5,925 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    TR1 or TP1?
  • Sorry, TP1. If it's so negligible why is my solicitor making such a fuss about it? This is some of the email:

    "No copy of the Transfer dated Date Redacted can be provided and so I am unable to advise you on the contents of that deed and how it could affect you as the owner of the property.

    I have however, been able to obtain a copy of a Transfer deed relating to another property in the development which details the rights/reservations and restrictions that would have been imposed by the missing Deed.  Developers use a standard Deed throughout their development. 

    The sellers solicitors have agreed to put in place Missing Information Indemnity Insurance, a copy of which is attached for your information. 

    This will indemnify you and your Lender should you suffer loss and expense in the future as a result of the defect.

    It may be your view that the prospect of financial redress from the insurance policy will not solve the problem for you.  In these circumstances you could withdraw now from the transaction.  You may wish to consider this option if you believe that the defect will severely affect your enjoyment of the property.

    Subject to the above, my advice is that you should consider the option of an indemnity policy being put in place, to protect you and your Lender  against the defect in the property’s title. It is common to request a seller to arrange such policy or to cover the cost of the same to enable a transaction to proceed. The seller has agreed to cover the cost of this. "

  • Commission can be earned by selling indemnity policies, whether ones needed or not.
    Not saying this is something your solicitor would do of course . .
  • The buyer is paying so doesn't bother me though they did say a little further down they "wouldn't earn any commission" 
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