MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
Yup I know conveyancing and indemnities has been on here quite a bit recently.
We're in the process of purchasing a house. The local district council where the property is has a 2 month back log on local searches.
Solicitor has suggested taking out an indemnity. Options are:
1) Take out the indemnity and don't do the searches (cheapest)
2) Do the searches but if they aren't back at time of exchange take an indemnity anyway (more expensive as we have to pay for the searches and the policy)
I really don't want to wait 2 months+. Would be really nice to get the move done before Xmas and I don't want to risk our sale because of the delay (property we are selling falls under different district council).
Property is 15 years old. So you kind have hoped anything unusual would have been turned up previously.
What does the STW Hive think? I have no idea.
So if the searches eventually come back and there is radon contamination or the place is due to be demolished to make way for a bypass, what will the indemnity cover?
Are you using a solicitor local to the property to do the conveyancing? If so as them if there's any known risks that might be a concern, this might help you make your decision.
For example, near us in Mid Cheshire you have to have a Brine Search for salt works subsidence risk. Not a problem under us, but other localities not far away I'd wait for the search results.
2 month backlog is rubbish.
The policy wording is
Protection from actual financial loss that might arise in relation to any matter that would have been revealed had the following searches been carried out and received at the start of the policy:1. Local Land Charges search (LLC1)
2. local authority search (Con29)
3. drainage search (Con29DW)
4. any mining or mineral search including a Con29M coal search (for search validation and no search required (mortgagee only) cover options only)
Up to 400K
Surely you'd want to do the searches whatever as if something comes up then can claim on the indemnity insurance?
Surely you'd want to do the searches whatever as if something comes up then can claim on the indemnity insurance?
I'm leaning that way.
I'd try pushing the cost of the insurance to the vendor. They want to sell and it's their local authority that's causing the problem
If I was the vendor, and you tried to take the piss like that, I'd not sell to you on principle.
I'm with tthew on that one!
It's an extra £70 if I choose to do the searches as well.
The vendor's property is vacant. So really the risk is on us as sellers whether we want to delay the sale whilst waiting for the searches.
A vanishingly small amount compared to the cost of a house, but I guess you could also say if a insurance company has put that cost against the risk, the risk must also be pretty insignificant.
On balance, I'd probably pay it for peace of mind.
What about the stuff you may not like but puts you off in the search. HS2 100m away? Planning application for an abattoir down the road?
Might not cause financial loss but might put you off buying.
You could probably do a planning search yourself on line, you can with my LA
any extensions conversions to the property?
any nice bits of open ground near by?
is it in a coal mining salt mining or potential fraking area?
any road or rail extensions possible nearby?
is the house worth more than £400k
If no to all these then I'd say go with indemnity.
An other factor if the house changed hands recently you may be able to see a copy of the searches for that, not up to date but may give some peace of mind.
Cheers guys all good advice above and helpful with the decision making process. I think crankboy sums it all up nicely.
There was a conservatory added 2 years ago but that's still under warranty.
It's in a rural village so a fair bit of open ground / fields nearby which I guess they could build on.