Section 106

ooga_chaka

We are in the midst of trying to complete a house sale, but are buyers solicitor keeps raising enquiry after enquiry, to the chains frustration as everyone else is ready to complete.

There was a section 106 in place when our houses were built (document in question dated 12th December 2008). They have asked for confirmation from the council there are no outstanding claims etc.. and all settled.

This can take 6-8 weeks (we agreed to sell our house in May) so puts the whole chain on jeopardy.

I offered to take our indemnity insurance that covers against section 106. This policy was sent to their solicitor  whose response today was We have contacted the council for a response regarding the section 106 agreement. 

Can anyone explain why they still need to contact the council, despite the indemnity insurance? Isn't the point of the insurance to cover against future claims?

We've lived in this house for 10 years and others in the road have bought/sold without issue, so at a loss as to what the solicitor is doing when cover will be in place..

anselld

Presumably they have declined the offer of indemnity because by contacting the Council to enquire they have already negated its potential benefit.

They presumably think they can get a positive resoponse from the Council in a reasonable timescale instead.

Woolsery

If the indemnity insurance is like other types one can buy, the solicitor alerting the council will rule it out, so it may be that your only choice now is to chase a council response.

Wait and see if others confirm this.