restrictive covenant by dissolved company

smokedog2020

Yeah, vendor claims he dint know but I am not sure why none pointed them to check old title deed, anyway I still feel this as risky, as I don't know what will be the impact of this restriction covenant when it comes to selling it again.  
thank you so much guys for comments.

molerat

Indemnity policy - quick & cheap

Sorting it - time consuming & likely costly

Choice is yours

davidmcn

smokedog2020 said:

I don't know what will be the impact of this restriction covenant when it comes to selling it again. 

Pretty much zero once you've got insurance.

AdrianC

davidmcn said:

smokedog2020 said:

I don't know what will be the impact of this restriction covenant when it comes to selling it again. 

Pretty much zero once you've got insurance.

<raises eyebrow>
Do go on and explain that line of thinking...

davidmcn

AdrianC said:

davidmcn said:

smokedog2020 said:

I don't know what will be the impact of this restriction covenant when it comes to selling it again. 

Pretty much zero once you've got insurance.

<raises eyebrow>
Do go on and explain that line of thinking...

If somebody exists who has the right (and interest) to object to the property being subdivided, they'll almost certainly have done so at the time, not appear from the woodwork years after the event. If they do turn up, they'll not really want the property put back the way it was, they'll just be after some cash to stay quiet. The insurers can haggle with them and make them go away (or argue that they don't have any legal case). Insurers will take on the risk for a relatively trivial premium because they know the risk of any challenge is minuscule.

smokedog2020

are insurers responsible for make them go away? I will be responsible for paying money, and insurance guys can say no to pay me.  if court orders money should be paid, and insurance says no, (for some silly condition which we never read) then I will have to pay them from my pocket? so insurance may not take responsibility for making them go away. ultimately its me.

smokedog2020

I have seen this where I owed money to NHS, insurance was not responding. even though it was NHS fault insurance dint bother, ultimately I had to pay. (luckily insurance came back and paid the money after 6 months) but it was too much hastle. that was just £3k , but now house is around 500k, so that is what worries me. indemnity policy amount can be just 300 pounds, will they be fine with paying 500k , (with lifelong premium of 300£?).

davidmcn

smokedog2020 said:

are insurers responsible for make them go away?

Yes. That's the whole point of the insurance. You're worrying unnecessarily really. Like I said, why would somebody suddenly turn up and care about the fact that the house has been subdivided? If it were say a neighbour who had the benefit of the covenant, they'd be jumping up as soon as the planning application went in, not staying quiet for years. The insurance is cheap because the insurers know the risk is almost zero, not because they'll refuse to pay out.