Indemnity insurance - who pays??

[MeMeMeow85]

We’re ready to exchange subject to the vendors buying an indemnity insurance policy to cover a small piece of drive between the road and boundary of the property... by small, I mean 4x2m!

Our solicitor insists we need the insurance as it isn’t clear who owns that bit of land, so would protect us if there’s a future dispute.

Vendor’s solicitor insists the land belongs to the house, but she may be just saying that to cover herself, as she didn’t spot the issue when vendors bought house a few years ago (also using her for conveyancing).

Vendor wants to split the cost of the indemnity. It is approx £700. Any thoughts?

If it gets the deal done quickly and without bad feeling, go halves. If your solicitor is adamant it is required because the other side haven't sufficiently proved it forms part of the property then state you want the vendors to pay. Is it worth jeopardising things for the sake of £350 though?

I don't understand. I thought indemnity insurances were to cover you against possible costs eg getting up to buildings regs standards, possible asbestos removal, chancel repairs claims, etc.
In this case it seems a question of 'we own' or 'we don't own'. How will indemnity insurance help if you find that someone else owns the access to your property. How will it "make it right"? - they can't force them to sell or grant access.

I think the vendors should pay though. They are the ones who can’t provide sufficient proof of who owns the land.
However, for as you’ve invested a lot already and at the point of exchange, it’s a different issue entirely

It will pay your legal costs if it is unclear whether the owner of the potential ransom strip has granted an easement to the owners of the house and you have to go to court to establish there is a right of access over it.

Access over someone else's land for a prolonged period can also entitle you to continue to use it - I forget the specific term for this.

Ah, so vendors have lived there a long time, there are Stat Decs etc?
OP may never be able to establish ownership, just access rights?

Wowfudge prescriptive rights for more than 20 years continuous use.

Vendor should pay as they have a defective title, however the indemnity will benefit you as the purchaser, so you might want to go halves for the sake of agreeing this indemnity and not delaying things by going back and forth arguing the point.

I don't think indemnity insurance should cost that much? £700 would probably cover the solicitors fee if there were any issues?

Just been through this. Seller paid

There's no right or wrong answer. Policies are often taken out "just to be on the safe side" and it just depends how the discussions go. If it's something which is really clearly an issue and the seller's fault, they'd be unlikely to refuse but for most other things, sometimes the buyer pays, sometimes the seller (not direct but by adjusting the completion monies) and sometimes they split it.