How do indemnity policies work in property sales?
Indemnity policies are a type of insurance used in property transactions to protect against specific legal risks that cannot easily be resolved.
They are commonly used when there is an issue with the property that would otherwise delay or prevent the sale. Instead of fixing the issue, the policy provides financial protection if a problem arises in the future.
Common situations where indemnity policies are used include:
- Missing building regulations or planning permission
- Restrictive covenant breaches
- Lack of access rights or easements
- Title defects or missing documentation
The policy is usually arranged by the seller and paid as a one-off premium. It remains valid for future owners of the property.
Indemnity insurance can help keep a sale moving, especially when resolving the issue directly would take too long.
Sell House Fast works with your solicitor to handle issues like this quickly, helping avoid unnecessary delays. If you want a straightforward route to selling, you can request an free cash offer to see what we’d offer for your property.
