Indemnity Policy - who should pay?

clutton_2

20 years ago ?????? bonkers - utterly bonkers .......

Debt_Free_Chick

If I were the seller my take on this would be .....

An indemnity policy is utterly pointless. It will cover you for an event that won't and can't in law occur. If the event can't occur, then the insurance is worthless.

If you, the buyer, want this insurance - it's your choice. So you pay for it.

selectcase

I would not want to lose a sale for £250 as a seller i would pay for it without a seconds thought

Debt_Free_Chick

selectcase wrote: »

I would not want to lose a sale for £250 as a seller i would pay for it without a seconds thought

If only to show that there are two sides to every story, the buyer could take the same view and simply let it drop - after all, they've already incurred fees to get this far which they would lose if they pulled out. The seller has probably incurred very little expense by comparison ....

Of course, it really depends whether it's a buyer's or seller's market in the local area

Stevo1977

Debt_Free_Chick wrote: »

If I were the seller my take on this would be .....

An indemnity policy is utterly pointless. It will cover you for an event that won't and can't in law occur. If the event can't occur, then the insurance is worthless.

If you, the buyer, want this insurance - it's your choice. So you pay for it.

The surveyor for our mortgage lender is insisting that a policy is taken out, so it is out of my hands! Our lender want a policy in place or we won't get our mortgage!

Stevo1977

Debt_Free_Chick wrote: »

If I were the seller my take on this would be .....

An indemnity policy is utterly pointless. It will cover you for an event that won't and can't in law occur. If the event can't occur, then the insurance is worthless.

If you, the buyer, want this insurance - it's your choice. So you pay for it.

We have no choice on the matter - our lender's surveyor says it would be prudent to have a policy in place and therefore our mortgage is dependent on it...

Debt_Free_Chick

Understand where you are, although neither your surveyor nor your lender understand the reality.

There is no action that can be taken against you - either for lack of PP or BC so the policy is worthless.

Understand the seller's position too though .... and then decide how to deal with this.

Richard_Webster

Oh I wish some lenders looked at this Forum!

Buyer has choice of either paying or getting his solicitors to write to the lender saying that the requirement for the policy is silly as it only protects against enforcement which will not happen. As explained already such a course of action can produce unpredictable results and more importantly is likely to delay exchange of contracts significantly so that many buyers will take the view that it is easier to pay for a policy than wait around for a lender to make up its mind.

Also in this case if the surveyor has suggested a policy then frankly the lender is likely to follow that advice and you will have simply wasted time.