You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more
In 20 years time, will we all be reclaiming the money wasted on indemnity policies when big by and selling houses? You know, like people do right now for mis-sold ppi?
They don't seem to be worth anything when you read them but solicitors on both sides seem to think they're some sort of magic bullet.
The vendor doesn't have planning permission but will supply an indemnity.
The buyer can't understand the access rights in the deeds so wants an indemnity.
The vendor can't find the paperwork you've been asking for these last 8 weeks, but we can provide an indemnity.
The house doesn't have a roof but we can provide an indemnity.
There's a pikey camp in the front garden but don't worry, here have another ****ing indemnity.
Just supply the stuff you're meant to your ****ing useless Muppets.
If I get asked for/offered another ****ing indemnity, I'm going to kill someone. Can I get an indemnity to cover me for that?
useless toss, aren't they? I thought the same.
The vendor doesn't have planning permission but will supply an indemnity.
Believe it's perfectly valid in this scenario.
The vendor doesn't have planning permission but will supply an indemnity.
Believe it's perfectly valid in this scenario.
That's the point, it really isn't. It would cover against the local authority enforcing planning rules but wouldn't cover the cost of rebuilding to meet the rules.
Given how cheap they are, it's hardly worth bothering to get upset about them.....
The price isn't my main concern, although I hate spending money on pointless things like this. My objection is that a lazy vendor seems to think that various indemnity policies means they can ignore the fact they've messed up and will leave us with the legacy problems.
Was asked to buy an indemnity when selling my house 8 years ago as there had been a battery factory nearby so the land might be contaminated - £500. I refused but I think the buyer bought it anyway.
Mudshark, what was the policy proposing to do if it was found that heavy metals had contaminated the land the property was on?
My understanding is that if you wanted the land decontaminated, tough. It only comes into play if the local authority make you clear it. Even then, it does nothing about putting it back afterwards.
Sounds like you are paying for a crap policy in which case. The indemnity policy should cover;
i. the cost of altering demolishing or reinstating any part of The Property to
comply with an Order
ii. a reduction in the Open Market Value of The Property
PM me if you want OP, own a small insurance brokers and can take a look at the policy you've been offered. May be able to point you in the direction of a more appropriate policy.
Thank you sandwicheater, I might well take you up on that offer.
Can't remember but I refused based on the fact that when I bought the house in '98 I hadn't been told I needed one and nor had any of the neighbours who'd bought since. There was also a large nice development of flats on top of where the factory had been. This was in West London with lots of people affected if I was.
My objection is that a lazy vendor seems to think that various indemnity policies means they can ignore the fact they've messed up and will leave us with the legacy problems.
Maybe, maybe not.
As an owner of a Victorian House with Victorian deeds, I have zero proof of any rights of way, who owns which fence, exact size of garden etc. So if I come to sell and have a paranoid buyer, I'll have to offer indemnities etc as there is no paperwork for any of this...
I also appear to have missplaced all the Planning Permission / BC docs for an extension 16 years ago, although I could get duplicate copies for those.
That sort of stuff I can accept. It's doing building work without planning permission, replacing a consumer unit with no evidence of a sparky being involved, diy install of the log burner, replaced a window with a bifold door but no building control/fensa which they'd not of got given the undersized lintle.
replacing a consumer unit with no evidence of a sparky being involved, diy install of the log burner, replaced a window with a bifold door but no building control/fensa
If it was more than about 12 years ago you didn't need to. When I rewired the house and put in a new (back then) CU, DIY was still allowed. Been secretly adding to it all using my stash of 500m of black & red cable over the last 12 years.....
If only. They've only been there 8 years. Less than 2 years on the burner, less than 5 on the building work, about 4 on the cu.
if you don't like it, you don't have to buy the house...
if you don't like it, you don't have to buy the house...
Is a fair point!
It is a fair point and an option we are considering. Just pissed off that we've been told serveral times that this paperwork is to follow but now it's not available. We've been strung along until the 11th hour.
Hell, we've even done some of their donkey work for them to try and sort all this out.
if you don't like it, you don't have to buy the house...
Is what we did with a house when we were looking a few years ago.
We were offered a few indemnities for various things (can't find the planning permission for a garage conversion) and along with the blokes attitude to some odd things (like wanting 2k for his bespoke italian gas fire) we walked away.
Best thing we did I think
Hmmmm... What's your intuition OP? Sounds to me that this purchase is causing you much angst and inconvenience and is not flowing particularly smoothly. Have you ever noticed that when things are meant to happen, they do so with ease?
It could be helpful for you to take a step back and listen to your intuition.
Worryingly, that's starting to look like the best course of action. I just want to make sure I don't cut off my nose to spite my face as I know I can be a very particular person who likes things just so.
Buying a house is between a bit crap and really crap. It always feels awful
I have no experience if indemnities but can offer this advice
In the end your buying the house you have to decide whats fair. The solicitors job is to make sure you are clear about the risks you are taking on.
We had a few issues
Solicitor asks "have you had the boiler inspected by a competent proffesionsal?"
No we hadn't. At a glance it was 30 year old iron lump that could break any minute and when it did no parts would be available. But i knew that so why worry about. As it happens it did 8 more years before falling into 2 large pieces
The survey said it needed a new kitchen I'm not blind so i knew that
The survey says it has woodworm. We got a quote to have it sorted. The work was £300. I didn't ask for a price adjustment as it was minor and i wanted the house and i wanted it to a deadline
So I think you have to be clear about what you want. Our consumer unit was £500 to replaced. So i don't think I'd be bothered about that
But the planning permission sounds important. If your not happy with the indemnity for the planning permission then say so. Ask for what you think is fair. Walk away if it can't be provided
If only the home sellers pack requirement still existed, you wouldn't have these issues as the vendor would have to have everything up front before marketing the property…
When selling my house this year it turned out that I should have got building control approval for the roof I replaced. after a few weeks of being stubborn I got the buyers to pay the cost of indemnity.
I also needed a fensa cert for replacement windows and I won that argument as well.
Small sums but really lawyers need to be told! Jobsworths.
If only the home sellers pack requirement still existed
When did that go?
Do you still need the Energy Cert crap as well?
I think it was a couple of years ago. You still need an EPC, for what it's worth.
I think the home sellers pack was ill- conceived, but there were certain elements which would enable a purchaser to make an informed decision as to whether they want proceed before shelling out on solicitors, surveys etc.
We've already accepted a lot of stuff and had other stuff, like the roof, checked at our own expense. We gave the vendor an easy alternative to the planning permission for the out buildings and they've failed to come up with that. The consumer unit isn't the end of the world, I know but it might well be the straw that breaks the camels back. I'm pretty certain we're not asking for anything unreasonable. Most of it is similar to stuff we've provided for our buyer.
I think you've established the seller is a cowboy DIYer, so just ask for a few £k off the price to put right all his stuff or walk away.....
Well, they're digging their heels in on documentation and price so looks like it's option 2.
Their estate agent might turn the screws if there's a risk of no sale, so the vendors may still capitulate and offer to take out indemnities.
FWIW, when I sold my house last year, the indemnity for the lack of PP for kitchen/dining knock-through was less than the application fee would have been.