Deed Conveyance Covenant Help please

IAmNotARobert

Hello all,

I was hoping someone would be able to shed any light on the issue I have above. I am in the process of selling my house and the buyers solicitors have raised an enquiry about section 7 seven of the Deeds Title (seen above in picture)

This isn't something that I knew existed, I was young or naive, or maybe both when I purchased the house and didn't read this at the time (2010) and now I am selling its been brought to my attention.

Its not something that has been an issue since i owned the house, like i say, i never knew it was a thing.

My question is... what does it mean? Any help would be greatly appreciated. The buyers solicitors are asking me to take our indemnity insurance for it at a cost to myself of £36.81

I am totally lost as to what this is.

Thank you in advance

Robert

Rodders53

Need more than that from the Deed to be sure.  What does YOUR solicitor say about it/advise you?

As I read it the "Council" which one? Does it still exist? indemnifies you and all future purchasers against a potential rent charge referred to elsewhere within the Conveyancing Document ...
If "the Council" still exists then the Indemnity stands... If that Council went bankrupt or similarly no longer exists then... If buyers want an insurance Indemnity let THEM pay for it?

user1977

IAmNotARobert said:

I am totally lost as to what this is.

Are you trying to do your own conveyancing? If not, then it's your solicitor who should be guiding you about this. That's what you're paying them for.

IAmNotARobert

user1977 said:

IAmNotARobert said:

I am totally lost as to what this is.

Are you trying to do your own conveyancing? If not, then it's your solicitor who should be guiding you about this. That's what you're paying them for.

Valid question given the context, but no I am not. I have a solicitor doing this for me at a standard price.

The solicitor sent this in an email (in regards to the above covenant):

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1 - The Title Deeds refer to a rent charge for which a demand for payment could be made.  As your buyer is having a mortgage, your buyer's solicitor has asked if you would be willing to provide the attached Indemnity Insurance Policy to deal with this matter. The cost of the policy is £36.30. This is a one off payment and we would put the Policy in place on completion with the premium to be paid from the sale proceeds.  Please confirm if you are willing to agree to this and if so, please read the Policy with particular attention to the Statements of Facts A-F.  Please can you confirm these are all correct? If this is not the case, please advise.

------

There was also attached a Freehold Rent Charge Insurance policy quote.

IAmNotARobert

Rodders53 said:

Need more than that from the Deed to be sure.  What does YOUR solicitor say about it/advise you?

As I read it the "Council" which one? Does it still exist? indemnifies you and all future purchasers against a potential rent charge referred to elsewhere within the Conveyancing Document ...
If "the Council" still exists then the Indemnity stands... If that Council went bankrupt or similarly no longer exists then... If buyers want an insurance Indemnity let THEM pay for it?

The deed states that the council is 'Lincoln City Council' so they definitely still exist as I pay them Council Tax.

My solicitor sent the message I have replied to in the previous comment.

The rental charge (as i read it in the covenant) is for £50 charged by the Will of Henry Stone, dated 6th July 1688

Something about this all seems a bit off, which is probably why I am not understanding it.

propertyrental

It reads to me like
a) Henry Stone's will puts in place a rent charge of £50 
b) is this an annual charge?
c) has it ever been demanded from you?
d) have you ever paid t?

But irrespective of the above, 
e) Lincoln City Council have indemnified you (and subsequent owners) so they would pay it if you did not.
f) hence why the need for indemnity insurance

Having said that I'm not a lawyer so may be wrong!

user1977

IAmNotARobert said:

Rodders53 said:

Need more than that from the Deed to be sure.  What does YOUR solicitor say about it/advise you?

As I read it the "Council" which one? Does it still exist? indemnifies you and all future purchasers against a potential rent charge referred to elsewhere within the Conveyancing Document ...
If "the Council" still exists then the Indemnity stands... If that Council went bankrupt or similarly no longer exists then... If buyers want an insurance Indemnity let THEM pay for it?

Something about this all seems a bit off, which is probably why I am not understanding it.

If you don't understand it, pick up the phone and talk to your solicitor until you do understand it.

bouicca21

So Henry Stone essentially left an annuity to someone, with the payments pinned on a certain piece of land, on which OPs house now stands.  The chances are that it was left in tail male, ie that entitlement could be inherited by future generations via successive oldest sons.  If the will survives then you could find out who inherited and then work out the descent.  Again chances are that the direct male line failed a century or more ago.  

I don’t understand why an indemnity insurance is required when the council have already granted indemnity, especially as the chances of anyone being able to assert and prove a claim, let alone establish when the last payment was made seem to be zero.