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Do I Need Indemnity Insurance When Selling a House?

Imagine you sold a house six months ago. Now imagine you received a legal letter this morning about possible defects with the property. The buyer is claiming thousands to cover repair costs. What do you do?

If you didn’t inform the buyer about the defects before contracts were exchanged, you might be liable for their costs. Indemnity insurance covers you against this type of scenario.

Indemnity insurance usually involves a single payment. And cover lasts forever. This type of insurance is also a viable alternative to fixing a major defect with your property before it’s sold.

What does indemnity insurance cover me for?

Indemnity insurance covers you against a range of potential issues, including:

Restrictive covenant

A restrictive covenant forbids certain alterations to a property — such as an extension. Indemnity insurance covers and legal costs you might incur as a result of a covenant breach.

Building regulations

If a home you sold is found not to have the necessary building regs documentation, indemnity insurance covers the costs of altering the property for compliance. The insurance also covers the administrative costs of putting things right.

Absence of easement

If a neighbour prevents you from accessing drains that serve your home, indemnity insurance covers the costs of legal action.

Planning permission

Indemnity insurance for planning permission isssues

Building without planning permission can lead to legal action. In certain circumstances, this action might culminate in the demolition of a building or extension. Indemnity insurance covers all the costs associated with a non-compliant property.

Missing particulars

Indemnity insurance covers the seller for the costs of updating title deeds with missing or incorrect information.

No build-over agreement

If you decide to build an extension within three metres of a sewer, you might need to acquire a build-over agreement from the local water authority. Homes without such an agreement might be forced to remove all or part of the offending structure.

Adverse possession

If you can’t prove you, as the homeowner, own all of the land on which your property sits, you might need to take steps to prove legal ownership. Insurance covers you against the costs associated with someone else claiming ownership of the land.

Is indemnity insurance expensive?

In most cases, indemnity insurance is well worth the expense. The cost of dealing with the issues raised above can be astronomical. Yet the cost of a good indemnity insurance policy can be as little as £20.

If you want cover for the costs of dealing with a lack of planning or building regulations, however, the policy will cost a lot more. Don’t be surprised to find quotes of between £300 and £600.

Is indemnity insurance for property sellers necessary?

Indemnity insurance

The chances of running into legal issues after you’ve sold a property are low. Most indemnity policies never pay out — as problems are rare. But for your peace of mind, parting with £20 or £30 for a basic policy makes sense.

If you suspect there may be problems with building regulations, planning permission or land ownership, get indemnity insurance. But be prepared to pay a hefty premium.

Taking out indemnity insurance is a good way to sell a house fast. This covers you for a range of legal issues, so you don’t have to waste too much time searching for missing paperwork, certificates and permissions. Indeed, a lot of conveyancers and mortgage providers insist the seller takes out indemnity insurance at the earliest opportunity.

Having indemnity insurance can help you to sell a home quickly — but not that quickly. If you need to raise cash in a hurry, it might be best to avoid the market altogether. And that’s where Flying Homes comes in. We buy houses fast. In some cases, we’re able to complete a purchase within a matter of days.

Conveyancing – What exactly does a conveyancer do?

What does a conveyancer do?

The legal process for buying or selling property can often be a complicated legal process, and most people appoint a solicitor or professional conveyancer to take care of all the essential legal elements, known as conveyancing.

From the moment you have an offer accepted, until that exciting day when you get to collect the keys, conveyancing is the process through which ownership of the property legally transferred from the seller to you.

You can do the conveyancing yourself, but unless you know your stuff, it’s probably quicker and easier to pay a professional – especially if you and the seller are hoping for a smooth and speedy transaction.

How do I appoint a conveyancer?

Once you’ve had an offer accepted and chosen your mortgage lender, now’s the time to get a conveyancer to work on securing your dream home.

Your estate agent or mortgage provider may recommend one of their preferred conveyancers, or you can do your research independently. Be aware though that some mortgage providers will only work with one of their trusted conveyancers.

Buyers usually choose either a qualified solicitor who specialises in conveyancing or a professional conveyancer. It probably goes without saying, but do check out their credentials and feedback from previous clients before you sign on the dotted line.

Make sure you know what they charge, including any extra hidden costs or terms and conditions. It’s also important you feel comfortable that they can work to your timescale and keep up open lines of communication throughout the process. You don’t want to be chasing them for answers at every step of the transaction!

Once you’ve appointed a conveyancer, you’ll need to provide them with details of your mortgage, proof of your ID, and get all the legal paperwork checked and signed as quickly as possible. They will then write to the seller’s solicitor, confirming that they’ve been instructed to act on your behalf.

What does a conveyancer do?

In brief, a conveyancer processes the legal documentation, searches, and exchanges involved in buying your new home. They will examine the draft contract for your property purchase and liaise with the seller’s solicitor about any queries or concerns you may have.

Your conveyancer will also conduct property searches, which may uncover information that’s not immediately apparent about the property just from looking at it. Check for any local plans that might affect your new home, verify boundary ownership, check for flood risks, and confirm that the seller does in fact legally own the property they’re selling.

In a few cases, it might be that these searches turn up vital information that affects your willingness to buy the property – like plans for a new football stadium right on the doorstep – or alters the value of the building in some way. In this case, your conveyancer will also assist you with any renegotiations.

Finally, they will also process the documentation for your exchange of contracts, register your new ownership, and arrange the payment of stamp duty. Then, if all goes to plan, the only thing left for you to do is pick up the keys and get yourself moved in!

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