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Solicitor won't accept indemnity insurance

(4 Posts)
misskatamari Tue 25-Oct-16 08:33:27

Hi, I'm hoping someone can offer some knowledge or advice as this is a bit of a minefield for me.

We're in the process of selling our house and buying a new one. Have been assured all is going well by the solicitors and sales progressor, and our vendor wants to complete on Monday (massive stress in itself as solicitors haven't been communicating any of this between them!). Anyway, that's doable, but then our sales progressor contacted our buyers solicitor yesterday and now there are issues there!

We have a twin bed terrace and part of the wall where the stairs are (between sitting room and dining room) has been opened up. This was done before we moved in 8 years ago and nothing came up as an issue when we moved in (as far as we were aware anyway, we were first time buyers and in retrospect didn't have a clue what was happening!). Anyway, our buyers solicitors queried at the start of October asking about building regs and certificates - we don't have any, didn't do the work and nothing was flagged up when we moved. Our solicitors assured us all was fine and we offered to provide the buyer with indemnity insurance. I was told they had accepted this and breathed a sigh of relief. Until yesterday when apparently all is not okay, and our buyers solicitors is refusing to accept indemnity insurance and wants a certificate.

I don't even know what that involves, it it seems ridiculous as surely indemnity insurance is made for these situations and is totally standard? Our sales progressor was going to speak to our buyer directly yesterday so I'm hoping he see reason, but if not and they're demanding certificates, I just don't know what that all entails.

I don't really know what I'm asking, I'm just stressing and worried the move is all going to fall through when we're desperate to get it sorted and move to our new house (so scared we're going to lose it). Just hoping someone might have some advice or know anything about situations like this. If you got this far, thank you for reading!

kirinm Tue 25-Oct-16 08:41:28

I'm not an expert at all but presumably they won't a certificate confirming it complies with building regs? It'll take you a while to sort that as you'll need to get building control out and put right anything that doesn't comply.

Your solicitor should advise you but just getting building control out will cost you and be dependent on how busy they are.

Surely it will only have to comply with the building regs that were in place at the time the work was done?

Rangirl Wed 26-Oct-16 06:51:41

The solicitor will only be acting on his clients' instructions,both the purchaser and their Lender.Indemnity insurance is very much the second choice behind retrospective consents/Letter of comfort from the Council.

Some Lenders won't accept Indemnity insurance,depending on the LTV.It might not be possible to get it if eg the Council has been notified of the unauthorised work
The Insurance does not replace the lack of docs it just pays out if there is a problem
The solicitor wants to be sure the position is as well covered as it can be so their client doesn't have an issue on resale


HereIAm20 Thu 27-Oct-16 13:32:10

When I had to get a retrospective building regulations application it took 4 years in total as the Inspector kept changing his mind what he required! It was a very painful experience.

do you really mean complete or exchange because if you have already exchanged then they can't insist on this.

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