Why indemnity policies are sometimes required when Conveyancing in Leicester

One of the things that can annoy property sellers in connection with Conveyancing in Leicester is having to agree to pay for indemnity insurance policies that buyer’s Conveyancing Solicitors insist upon. Mr and Mrs H encountered this when selling their home on Astill Drive, Leicester LE4 in 2010. They asked their Property Lawyer Jaclyn Smith to explain why a problem had arisen, when they had not encountered any difficulties as they bought the property.

It is now standard practice during Conveyancing in Leicester for sellers to be asked to complete an information questionnaire. This includes queries relating to alterations or extensions which may have been carried out on the dwelling, whether any replacement windows or doors have been installed, and whether any works have been carried out to the electric wiring, gas or water systems.

Mr and Mrs H had bought their house some ten years earlier, and had not carried out any work themselves. However it transpired that an extension had been added by a previous owner, but there were no records of building regulation or planning consent having been obtained.

During the course of the Conveyancing in Leicester for this very ordinary semi-detached home, the Conveyancing Solicitors acting for the buyers, P A Todd and Co of 142 Evington Road, Leicester LE2 1HL asked for evidence that the extension complied with regulations. As this question had apparently never been raised when the vendors bought their residence, they could not supply any further information. They were therefore asked to pay the premium for an indemnity policy which would cover any loss or expense incurred by the buyers should the local authority ever take any enforcement action.

The clients queried why they should pay for this, and pointed out that they had never carried out any alterations. Jaclyn replied that because of many changes which have been made to building regulations during the last few years, plus the more stringent requirements which mortgage lenders now impose, many Property Lawyers now insist upon insurance being obtained even in cases where the risk is either non-existent or very remote.

As the premium was only £21, which clearly reflected the remoteness of any risk, the clients agreed to pay it rather than delay their sale any further. Jaclyn made the necessary arrangements and the transfer was completed without further delay.

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