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Vendor refusing to obtain indemnity policy

(39 Posts)
Neron Tue 14-Jan-20 10:27:26

Buying a bungalow, literally the only outstanding thing is an indemnity policy. A huge conservatory has been built and they don't have a building certificate and have refused to buy the policy (about £100).
We had a full structural survey, flagged new flat roof to be done immediately. We decided to swallow this cost ourselves rather than dick about.
Can I ask - is it normal for the vendor to refuse and for us buyers to pick it up?

endofthelinefinally Tue 14-Jan-20 10:31:14

I would walk away tbh.

LIZS Tue 14-Jan-20 10:34:20

Seems shortsighted. How old is extension?

AGreatUsername Tue 14-Jan-20 10:36:14

Our vendor refused. She was a narky old mare who was raging at us because we insisted she meet us halfway on the mortgage down-valuation. We did begrudgingly pay the indemnity because we’d paid out for solicitors and couldn’t face walking away.

Neron Tue 14-Jan-20 10:44:08

Not sure on the age of it, the conservatory is 4 meters long and wide. Has hearing and light etc in it. The flat roof and glittering that needs replacing is above a bedroom and the garage. Think about 5 - 8k to do those plus it needs renovating so kitchen, bathroom, decorating etc

Neron Tue 14-Jan-20 10:45:27

Guttering, not sure where glittering came from...

OnlyFoolsnMothers Tue 14-Jan-20 10:47:55

I'd walk away, mostly it's a buyers market, if they want to be arsy over £100 good luck to them!

wowfudge Tue 14-Jan-20 10:49:23

Is the flat roof leaking? Otherwise it doesn't need replacing immediately. I'd be inclined to use as leverage. If the vendor won't budge, you'll have to pay for it yourselves.

misspiggy19 Tue 14-Jan-20 10:49:30

Likewise you could just buy it for £100? Upto if you want the house enough?

Mildura Tue 14-Jan-20 10:51:14

It really depends on when it was constructed.

If it was in the past few years I'd be pretty insistent.

If the conservatiory has been there for 10 years+ there really isn't anything to indemnify yourself against.

Neron Tue 14-Jan-20 10:56:27

Our solicitor said it's an condition of the mortgage so we have to have one.
Yes the roof is leaking, the guttering is broken and emptying on to the flat roof so needs doing immediately.
We haven't had much luck in buying houses, last one fell through day before exchange and I'm just pissed off because we were prepared to swallow the roof cost.

Do you have to buy a policy every year or is it a 1 off payment?

Mildura Tue 14-Jan-20 10:57:13

It’s a one-off payment

TriangleBingoBongo Tue 14-Jan-20 10:57:54

Firstly, it’s a one off policy but check with your solicitor.
Would people really walk away for the sake of £100? You’ve already spent more than that. Why not offer to go halves and if they still refuse. Suck it up.

Khione Tue 14-Jan-20 11:01:25

Generally speaking an indemnity policy isn't worth the paper it's written on. It doesn't guarantee the work at all.

Mortgage companies demand them to cover legal costs in the very rare incidence of a third party claim in the future. Basically just to cover their back. In most cases not worth the paper its written on.

May as well pay for it yourself if your mortgage company is demanding it otherwise I wouldn't bother.

Neron Tue 14-Jan-20 11:03:14

Thanks 're it being a one off payment.
Habent said we're walking away, just pissed off given we haven't even tried to go back about the roof cost and he's being a douche for the sake of a 100.00 policy for something that would flag up to whoever tries to buy it.
Don't really know the protocol of these things and first time it's come up

Mammajay Tue 14-Jan-20 11:07:35

We had this same thing, We, as buyers, paid £75. Our solicitor thought we ought to pay it.

Neron Tue 14-Jan-20 11:33:04

Thank you all. I've just emailed our solicitor with instructions to go ahead. It's annoying but we need to move. Thanks again.

OnlyFoolsnMothers Tue 14-Jan-20 11:43:54

Likewise you could just buy it for £100? Upto if you want the house enough? well yes but the conservatory not having the right sign offs is the sellers issue not the buyers, hence I wouldnt be paying it personally.

Pickpick101 Tue 14-Jan-20 12:04:55

I'd pay though wouldn't be happy about it. I didn't think conservatorys needed building regs though. I would question exactly what this covers mind.

Asdf12345 Tue 14-Jan-20 12:24:44

At £100 I’d just pay it.

Mortgage requirements can be rather moveable, especially when attached to a retention. Ours came with a whole list that they agreed to ignore when I phoned up and offered to increase the deposit to cover them all.

Mammajay Tue 14-Jan-20 12:52:19

Our solicitor did a lot of work for us and would always fight our corner but he felt this was ours to pay not the vendors

Dinosauraddict Tue 14-Jan-20 13:23:21

I paid indemnity as a buyer once. Was about £150 I think, and honestly with the amount we'd spent on searches/fees etc we weren't walking away. It's nothing in the grand scheme of houses - easier just to pay it and move on!

Mildura Tue 14-Jan-20 13:35:19

Indemnity insurance used to resolve issues that come up during housing transactions is something of a con, imho.

I have never heard of anyone claiming on a policy, it's just a lazy way for there to be a tick in the right box.

In this case what are the chances of the local authority taking enforcement action for lack of building regs? Somewhere around zero I should think.

However, because the amounts are relatively small in comparison to the price of the property someone ends up agreeing to pay for the policy.

Neron Tue 14-Jan-20 14:00:37

Completely agree, in comparison to what we have spent on survey, searches and solicitor etc £100 is nothing. It's just annoying as it's a sellers issue and we've already sucked up about the roof (our choice to do that I know).
Already gave instructions to solicitor to go ahead, and I've asked if we can exchange this week given everything's done then

897654321abcvrufhfgg Wed 15-Jan-20 14:41:30

Indemnity policy/insurance can’t be bought by the buyer. It’s insurance to protect the seller in case the council make you tear it down

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