Seller refusing to pay for the indemnity insurance policy

Exodi

TBagpuss said:

If I were in the seller's position I wouldn't pay for a policy for the garage.

I think most take this view, given that it's believed to be around 65 years old (and it's not clear whether the seller even built it).

In 20 years time when the OP comes to sell the house, would they be happy to pay for an indemnity policy covering the 85 year old garage? Or will they respectfully insist that if the buyer wants such a pointless policy, they're welcome to pay for it themselves.

Will the OP's future buyer then eventually need to pay for an indemnity policy when they come to sell for the 100+ year old shed? Where do you draw the line??

As was posted earlier, some lenders draw the line at 20 years.

chanz4

Zoe02 said:

Hi all, 

I am in the process of buying a 1930 semi-detached property. The buying process started late in June and we are now coming towards the exchange stage. My solicitor raised some enquiries which the seller's solicitor has returned to. My solicitor said because I am using a mortgage indemnity insurance policy, it will be required costing £210 and my solicitor is adding £60.00 plus VAT to original quote due to the the extra work.so total cost approximately £300.

 

The seller could not fulfil the 2 points, hence why the policy is required.

 

We note from the title deeds that no other building is to be erected on the property. Please provide us with indemnity insurance for breach of the restrictive covenant.

 

Please provide us with the Gas Safe Certificate for the installation of the boiler at the property. If your client is unable to find evidence that this was installed prior to 2005 or does not hold the Gas Safe Certificate we will require an indemnity policy put in place by your client to protect our client against any possible future enforcement action.

 

Seller believes the garage was built in 1957 and there is no documentation for it. Is it worth contacting the agent tomorrow morning to raise this or will the buyer pay for this as well? They are collecting £490,000 for the property already.  

think your solicitor is just trying to flog you some insurance, ask planning about the garage. Gas cert isnt required 

hannahcolobus

As others have said, it doesn’t sound like it’s a Gas Safety Certificate/ service issue.

The issue will be that there is no record of installation for the boiler, so technically (take with a huge pinch of salt) the council could take enforcement action as any boiler installation has to be lodged with them. Before you rule this one out you would need to know exactly how old the boiler is, which you’d need the serial number for. But- as others have said it would be highly highly unlikely that a council would intervene, so yes the policy is probably a waste of money.

Depends how much you want to dig your heels in! In my experience it tends to be the ‘cheaper’ conveyancers who make up their income forcing people to buy these policies. Sometimes they’re necessary, but sometimes they definitely aren’t. 

[Deleted User]

In the future the garage will be demolished and house will be extended and renovated. No plans to sell.
I have pushed back with the solicitor and informed the EA progressor of the situation.

If the solicitor refuses then will have no other choice but to pay for the indemnity insurance.

The solicitor was found online and not the cheapest but went with them because of their Google 4.4 review.
To be fair have had no other issue but this policy.

Thank you for all the responses.

[Deleted User]

Hi all,

Positive update.  The responses really helped encourage me to challenge the solicitor.  We can now progress to exchange without the indemnity insurance policy. In the previous enquiries, the seller did say they would have a gas service which they have now provided. 

"Thank you for your email, the contents of which I note.

I enclose the gas safety certificate carried out.

Please confirm that you are happy to proceed in order that I can liaise with the sellers in respect of a completion date."

 

Thanks all, every little helps

hannahcolobus

Well done for doing your research and then standing your ground. A lot of people (understandably) just pay it! Even though some of the time they’re a rip off and totally useless! Thanks for the update. 

COrd

Bumping this older post for a bit of advice as I'm in an identical situation but I'm told our lender (Barclays) will not release funds unless the particulars paperwork is complete, or an indemnity policy is in place. Since the lender are insisting, presumably there's no room for negotiation? We are happy to proceed without

user1977

COrd said:

Bumping this older post for a bit of advice as I'm in an identical situation but I'm told our lender (Barclays) will not release funds unless the particulars paperwork is complete, or an indemnity policy is in place. Since the lender are insisting, presumably there's no room for negotiation? We are happy to proceed without

"Told" by your solicitor? If so then your options appear to be get what the bank require, or find the money from somewhere else. You can negotiate with your seller whose responsibility it is to sort it out.

Usually better if you start your own thread though, otherwise people tend to overlook that it's an old thread you've bumped and start answering the original post. 

desthemoaner

We bought and sold four properties before I ever came across one of these indemnity policies. In our case it felt like a legitimate requirement, because the bungalow we were buying was being sold without deeds, and therefore with possessory title. As it happens we eventually didn't buy, but although the risk of someone turning up with the deeds and claiming that our home was theirs was miniscule, we felt that we had to have that insurance in order to be able to sleep at night. Surprised to hear that such policies are now being sold for such mundanities as old boilers. 

COrd

We were surprised too. Thank you both for the helpful insight.