Title insurance & Conveyancing indemnity

 

 

 

 

 

 

 

 

 

 

 

Title insurance is a type of insurance that protects homeowners and lenders from financial loss due to defects in the title of a property. A title defect refers to any issue that affects the ownership of a property, such as unpaid taxes, liens, or other claims against the property.

Title insurance policies are typically purchased during the homebuying process and are issued after a title search has been conducted to ensure that there are no outstanding claims or liens on the property. The insurance policy will cover the cost of defending against any claims or legal disputes related to the title, as well as any financial losses that may result.

There are two types of title insurance: lender's title insurance and owner's title insurance. Lender's title insurance protects the lender's interest in the property and is typically required as a condition of obtaining a mortgage. Owner's title insurance, on the other hand, protects the homeowner's investment in the property.

Title insurance is a one-time cost, typically paid for at the time of closing, and the policy remains in effect for as long as the owner or their heirs own the property. While it is not required by law, it is often recommended to protect both the lender and homeowner from any unforeseen title issues that may arise.

Conveyancing indemnity insurance is a type of insurance that is designed to protect property buyers, sellers, and their conveyancers against financial loss resulting from defects in title, planning permission, or building regulations. There are several types of conveyancing indemnity insurance available, including:

1. Defective Title Insurance: This type of insurance covers the buyer in the event of a defect in the title, such as a missing or fraudulent transfer or a lien on the property.
2. Planning Permission and Building Regulations Insurance: This type of insurance covers the buyer in the event that the property was built or altered without proper planning permission or building regulations approval.
3. Restrictive Covenant Insurance: This type of insurance covers the buyer in the event that there are restrictions on the use of the property, such as restrictions on building or alterations.
4. Chancel Repair Insurance: This type of insurance covers the buyer in the event that they are liable for the repair and maintenance of a local church or other religious building.
5. Flood Risk Insurance: This type of insurance covers the buyer in the event that the property is located in an area at risk of flooding.

Conveyancing indemnity insurance is usually purchased by the seller or the buyer's conveyancer during the conveyancing process, and the policy remains in effect for as long as the policyholder owns the property. It is important to note that conveyancing indemnity insurance is not a substitute for a thorough due diligence process and should be used as a last resort to protect against any unforeseen issues that may arise.