Disclosing indemnity insurance

Pammiew

Hi!
I was looking for some advice please, I can’t seem to find anything online.
 We are selling our property and the previous owner took out indemnity insurance for lack of planning/building regs paperwork when we purchased as a advised by our solicitors.
Now that we are selling I wondered if we tell our estate agent up front about it or leave it to be discovered in searches? Are there any rules the EA would need to disclose this in viewings to potential buyers? 

Thanks!

GDB2222

I'd leave it, provided that you are not aware of any issues with the structure. 

user1977

The insurers prefer you don't publicise the existence of the policy too widely (for fear that it might encourage a claim to be made if a third party finds out). I would leave it until you're asked a relevant question.

eddddy

The legal position is that Estate Agents are required to ask you questions about, and tell prospective buyers about, "material information" that might impact on somebody's decision to buy.

So the question is whether Indemnity Insurance is "material information" - but with the added complexity that you're not allowed to disclose its existence.

TBH, I probably wouldn't tell the estate agent, unless they specifically asked. 


FWIW, here's what the Property Ombudsman's Code of practice for estate agents says:

The Consumer Protection from Unfair Trading Regulations 2008 require you to disclose any information of which you are aware or should be aware of in relation to the property....

... All material information (*) must be disclosed and there must be no material omissions which may impact on the average consumer’s (*) transactional decision (*). Where information is given to consumers and/or their representatives, it must be accurate and not misleading.

https://www.tpos.co.uk/images/Codes_2019_a5/TPOE27-8_Code_of_Practice_for_Residential_Estate_Agents_A5_-_Effective_1_June_2019.pdf

Justonemorecupoftea

The way the property information is laid out is such that you only need to provide building regs certificates for work that was done when you owned the house, there is no need to supply this form so nothing to indemnify against. The insurance will lapse when you cease to own the property.

user1977

Justonemorecupoftea said:

The insurance will lapse when you cease to own the property.

No it won't, such policies are generally for the benefit of all future owners/lenders.

Pammiew

Thank you for your replies! Yea, the structure has been sound and we’ve been here for 7years without any problems. I’ve decided not going to mention it unless asked outright in which case full disclosure. Thanks for your advice and info! ☺️