O/T Advice re; Building Covenant restrictions Insurance

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cjd

Well-known member

Jun 22, 2006

6,102

La Rochelle

• Jun 2, 2015

• #1

Am in the process of selling my house, but have been informed by the buyers solicitors that there was a restrictive building covenant put in place when it was originally built 70 years ago. I had an extension built 8 years ago.

They require an Indemnity Insurance just in case they dig up the dead bodies of the original builders etc . I have been looking online , but am unable to source any further information re; who insures these things or costs etc

Any advice would be welcome.

 

Westdene Seagull

aka Cap'n Carl Firecrotch

NSC Patron

Oct 27, 2003

20,994

The arse end of Hangleton

• Jun 2, 2015

• #2

What the buyers solicitors want and what is required are two entirely different things. Depending on how important the sale is to you I personally would tell them that if their clients want that insurance then they will need to pay for it.

 

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cjd

Well-known member

Jun 22, 2006

6,102

La Rochelle

• Jun 2, 2015

• Thread starter
• #3

Westdene Seagull said:

What the buyers solicitors want and what is required are two entirely different things. Depending on how important the sale is to you I personally would tell them that if their clients want that insurance then they will need to pay for it.

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I am inclined to agree with that advice, as i have already reduced the price by £70k.

However, before digging my heels in I would like to try and find out how much it costs.

 

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knocky1

Well-known member

Jan 20, 2010

12,963

• Jun 2, 2015

• #4

£150-300

 

happypig

Staring at the rude boys

May 23, 2009

7,956

Eastbourne

• Jun 2, 2015

• #5

cjd said:

I am inclined to agree with that advice, as i have already reduced the price by £70k.

However, before digging my heels in I would like to try and find out how much it costs.

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I would bounce it back to them, ask them exactly what policy they require and for them to supply you three quotes. I would also contact the buyer directly and discuss it with them (when a friend bought his house a search revealed neighbours drains running across his land. Normal practice is to have an insurance that covers any issues arising. His solicitor said the seller should pay, the sellers solicitor said he should pay. They were at this impasse for a month until he spoke to the seller and they agreed to go halves - about £25 each. Never lose sight of the fact that solicitors can be pedantic twats)

 

Bold Seagull

strong and stable with me, or...

Mar 18, 2010

29,779

Hove

• Jun 2, 2015

• #6

happypig said:

I would bounce it back to them, ask them exactly what policy they require and for them to supply you three quotes. I would also contact the buyer directly and discuss it with them (when a friend bought his house a search revealed neighbours drains running across his land. Normal practice is to have an insurance that covers any issues arising. His solicitor said the seller should pay, the sellers solicitor said he should pay. They were at this impasse for a month until he spoke to the seller and they agreed to go halves - about £25 each. Never lose sight of the fact that solicitors can be pedantic twats)

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It is surprising how many buyers don't realise their solicitors are asking for this kind of stuff. I know of several cases where a purchase was being held up and the buyers went mad when they found out it was their solicitors asking for stuff they didn't know anything about, or cared about for that matter. All it took was for the buyer to instruct their solicitor to get on with it that the purchases went through.

 

Dick Swiveller

Well-known member

Sep 9, 2011

9,155

• Jun 2, 2015

• #7

Think I paid around £100 9 years ago. I was the buyer and my solicitor was trying to get the seller to pay for it but it was holding everything up. Same kind of thing although the house was built in 1974, the builders were long since disappeared.

 

sully

Dunscouting

Jul 7, 2003

7,831

Worthing

• Jun 2, 2015

• #8

I'm astounded that you can even insure against it.

Can anyone provide any case law as to what claims have ever been made? I bet it's a big fat zero.

Solicitors and insurers making up reasons to trouser some money? Surely not!

 

Westdene Seagull

aka Cap'n Carl Firecrotch

NSC Patron

Oct 27, 2003

20,994

The arse end of Hangleton

• Jun 2, 2015

• #9

Bold Seagull said:

It is surprising how many buyers don't realise their solicitors are asking for this kind of stuff. I know of several cases where a purchase was being held up and the buyers went mad when they found out it was their solicitors asking for stuff they didn't know anything about, or cared about for that matter. All it took was for the buyer to instruct their solicitor to get on with it that the purchases went through.

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The problem is too few people understand that the solicitor YOU hire is there to do what YOU say ( within the boundaries of the law ). One solicitor told me I needed Chancery Liability Insurance when I was purchasing a house. I pointed out what she meant was she recommended I had it, not that I had to have it. She was told to stop delaying and get on with the purchase. The small exception is that your solicitor also has to keep in mind the interests of the mortgage company as well ( or you could lose the mortgage offer ).

 

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cjd

Well-known member

Jun 22, 2006

6,102

La Rochelle

• Jun 2, 2015

• Thread starter
• #10

Many thanks for all the replies.