Legal indemnity insurance as part of the conveyancing and remortgage process

This article has been provided by Isis Conveyancing Insurance Specialists Ltd, a member of our panel of title insurers.

It's common knowledge that thousands of property transactions, as well as remortgages, are taking place every day all over the UK. But perhaps less well known is the role that legal indemnity insurance can play in both "streamlining" the conveyancing process and speeding up completions. So what can these policies cover and why do they play such an integral part to the conveyancing process?

Swift and cost-effective solutions

Whether buying, selling or remortgaging land or property, there are numerous issues surrounding the transaction that may cause delay or, at worst, result in the deal falling through. Defects in a property title can vary from queries over ownership of the land, missing deeds and documents, or rights of access to a property to name but a few examples. Quite often, the easiest and cheapest way to resolve these "defects" is to purchase legal indemnity insurance.

A vital link in the chain

In every property transaction, it's the role of the solicitor to keep the process moving as it gathers momentum towards completion. If investigation of title unearths a potential issue, the process can grind to a virtual standstill until that problem is resolved. As well as being problematic in the case of a residential transaction, this can cause costly delays for large, commercial developments. In the majority of cases, if there is any query over the title of a property, the lender will not release funds without the defect being removed or insured. This is where a legal indemnity proves invaluable. Simply by obtaining insurance to cover the future potential risk of a claim by a third party, the entire transaction can quickly get back on track. It speeds up the conveyancing process by avoiding the need to first investigate title and also provides the "comfort" of financial protection for the lender in relation to its mortgage. Legal indemnity insurance is often arranged on an individual basis for specific identified "defects", whereas for remortgage transactions, indemnity cover can be provided on a "block" basis covering all transactions.

Getting a legal indemnity for the client

Legal indemnity insurance in today's market is quick and often inexpensive, particularly when arranged on a "block basis" for volume transactions like remortgages and it helps to avoid unnecessary delays as well as providing valuable cover. Some specialists in the market can tailor "block" indemnity covers, bringing together cover for a variety of problems (at comparatively low cost) for matters such as Lack of Planning Permission or Building Regulations, Chancel Repair Liability, Defective Title and Contaminated Land.

Mark Dennis, Isis Conveyancing Insurance Specialists Ltd

01603 761515

Isis Conveyancing Insurance Specialists Ltd
www.isisconveyancing.co.uk