Sometimes, there can be a defect in the title or paperwork for the property. A defect could be anything from a restriction placed on the title which has been ignored or the lack of building regulation approval for an extension or structural alteration to the property. The quickest and cheapest way to provide protection to a buyer for a defect is to give legal indemnity insurance.
What does it protect the buyer against?
Legal indemnity insurance will protect the buyer against any action taken by a third party if and when that third party realises that they may have a claim against the owner of the property.
How much does legal indemnity insurance cost?
A one-off premium is paid. The level of the premium is dictated by the amount to be insured and risk the insurance company judge to be taking. Most premiums fall between £150.00 to £250.00.
The premium is usually paid by the seller of the property.
For more information about indemnity insurance, please contact our Residential Conveyancing team on 01332 340 211.