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Indemnitiy Guarantee

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Hi

Can someone shed some light on this relatively new legislation

My brother is in the process of selling his property, ready to exchange, and the purchasers solicitor has requested a land indemnity guarantee, cost ?, not sure what it is to be honest.

The house is a 1950's semi in the south.

Anybody had a similar request on a sale, and who is responsible for this cost. Buyer, Seller, Gordon bloody Brown.

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Hi

Can someone shed some light on this relatively new legislation

My brother is in the process of selling his property, ready to exchange, and the purchasers solicitor has requested a land indemnity guarantee, cost ?, not sure what it is to be honest.

The house is a 1950's semi in the south.

Anybody had a similar request on a sale, and who is responsible for this cost. Buyer, Seller, Gordon bloody Brown.

It sounds like the buyers (or rather their solicitors) have requested an insurance indemnity policy to cover a defect on the title. If this is the case it could be a thousand and one things, no building regs for a conservatory, access over third party land, etc. Generally it is seen as the seller's responsibility to cover the cost as the insurance policy is protecting against a defective title. It would be useful to know what in particular the solicitor has requested it for. In most cases it is the solicitor acting in their role for the mortgage lender where this arises.

about £100 I think

Depends what it's for, could be more.

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Well guys and girls.

Me, well i would just pay it, get out now.

Him, well, he his having second thoughts, rising again market, yep, alright :lol:

I have never heard of this cost before, why would you want a guarantee against a defect in the title etc.

It sounds quite interesting, could be another nail in the coffin of this bloody big balloon.

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I have never heard of this cost before, why would you want a guarantee against a defect in the title etc.

For instance if you had a house where you had erected a conservatory but failed to get the necessary building regulations certified by the council this would be seen as a defective title as, in theory, the local authority could discover that the buildings inspector did not sign off the work, and then request that they inspect the conservatory which may involve dismantling at least part of it. Same goes for basement or loft conversions. The indemnity insurance policy is there to cover the cost of this. It is highly unlikely the council will do anything and therefore most buyers aren't that bothered, but where a mortgage is being taken out for the property the bank have more rigid criteria to fulfil. As the solicitor acts for the buyer and the mortgage lender this is why it becomes important.

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Mildura

Thanks, i will pass on this info. I will try to find out what the problem is.

I can only think of two things;

1) A shared walkway to the rear garage, owned by the local authority.

2) A Third bedroom extension over the kithchen extension, built around 1975.

I guess the sale will fail now any way. He will not pay the cost, his opinion is if they want it they can pay for it. :lol:

I went for a beer with him last night, he said " selling houses, it feels like everybody has got their hands in my pockets, and they are all p*ssing in the same pot" :unsure:

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Mildura

Thanks, i will pass on this info. I will try to find out what the problem is.

I can only think of two things;

1) A shared walkway to the rear garage, owned by the local authority.

2) A Third bedroom extension over the kithchen extension, built around 1975.

I guess the sale will fail now any way. He will not pay the cost, his opinion is if they want it they can pay for it. :lol:

I went for a beer with him last night, he said " selling houses, it feels like everybody has got their hands in my pockets, and they are all p*ssing in the same pot" :unsure:

Probably the bedroom extension. Buyers may well pay for it - depends how much they want the house. It would be a waste for both sides for the sale to fall through over a couple of hundred pounds but it happens often enough!

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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