Conveyancing Indemnity Insurance – Filling the Gap in Title Problems

When you come to buy or sell your house, there are very often issues which raise their head along the way which need to be resolved quickly, economically and with the least fuss.

Often, owners of property have not taken into account steps they should have taken when carrying out works to their property, for example,  or an issue has arisen since they bought the house, which needs resolving.

Resolution of such issues is good conveyancing practice and generally a requirement of any lender, if there is a mortgage involved.

Examples are – fitting new windows or a boiler which require building regulations compliance and not doing so; getting planning permission and building regulations consent for an extension, but forgetting to obtain a leaseholder, freeholder or another party’s consent to the works; Japanese knotweed has been found in the garden;  a property owner might  have been using a passageway serving a property, but there is no actual right of way in the title deeds; the insurance arrangements between two maisonette owners might not be compliant with the lender’s requirements – the list is long.

There are many insurance policies available which are generic to these issues and even if there is not an obvious policy available, then a bespoke policy can be applied for, explaining to any insurer clearly what legal issues are involved.  The burden to fund the policy – which is a one off usually  made on completion of the purchase – usually rests with the seller, as they are purporting to sell with “good title”.  Sometimes, buyers and sellers agree to split the cost.

It is essential to remember not to approach the party who has the benefit of the issue if you are looking to insure the problem – this will notify the party and in most cases, make it impossible to obtain insurance. So, if you have breached the terms of a lease, for example, do not ask the landlord what you should do.  In any of these cases, speak to your solicitor first.  They are likely to be the party which has notified you of the issue and please let them find a solution for you, as we do at MLP Law.

Policies are usually reasonably priced but in more complex areas, they can cost a few hundred pounds – but that can make the difference between being able to sell your property or not.

At MLP Law we have access to thousands of policies of this nature with our providers.  We are not financial advisors, but we can seek a solution to the problem and you will receive a “demands and needs” statement in support. Our providers are fast, efficient, knowledgeable and reasonably priced.  We are able to advise you if a policy is actually required in the first place and help you move your transaction on quickly.  We can also advise you as to any alternatives to insurance.

 

Please contact Anna Nuttall for more information at annan@mlplaw.co.uk or by calling 0161 926 1541