Establishing House Boundary

[Luckyphil]

Maybe think about getting the Seller to get an indemnity policy that covers any Building works not finally certified, I’ve just got one that cover PVCu Windows not Fensa registered , surprisingly the premium was quite cheap

regards

Phil

 

[Nakajo]

Is it worth the paper it's written on?

 

[Doug99]

Building control have been very informative. The steel work calculations were approved, the house owner just didn't have the final sign off on completion. The kitchen/diner conversion was completed in 2018 so any certification will include the electrics which will now have to meet 2020 regs, and not the 2018 regs when it was installed. The vendor has now been made aware of the problem so hopefully he will get on with resolving the matter.

 

[Doug99]

Maybe think about getting the Seller to get an indemnity policy that covers any Building works not finally certified, I’ve just got one that cover PVCu Windows not Fensa registered , surprisingly the premium was quite cheap

regards

Phil

What will the indemnity policy cover? How long does it last?

 

[Doug99]

'

 

[Luckyphil]

Hi

It will cover the lack of Certificate and the fact that it may be built to building regs or won’t ?

The insurance Co make an assessment of risk and offer you a premium based on this ,

my policy was for PVCu Windows & Doors not being fitted by a FENSA co and a damp proof injection course not covered by a guarantee , my policy gives £160k of cover , with no time limit , just means the Buyers solicitor is happy to proceed with the Purchase/ Sale

cheers
Phil

 

[Doug99]

Thanks Phil. Who purchases the Indemnity Insurance? The buyer or seller?
As regards the 2018 kitchen/diner conversion, as the uncertified electrics don't meet 2020 regs, does the insurance cover that?
The estate agents have informed us that the vendor has approached Building Control to address the lack of certification, so fingers crossed it will be sorted soon.

 

[denso13]

Who purchases the Indemnity Insurance?

The estate agents have informed us that the vendor has approached Building Control

Contacting the council generally invalidates an Indemnity Insurance policy,

"However, the policies become invalid if anyone makes an approach to the local council to ask about a lack of a building regulation certificate, therefore on no account should the local council be notified or contacted"

 

[Doug99]

This is copied from an Indemnity Insurance provider website:

Here are some of the main reasons why people take out indemnity insurance.

• Issues with planning permission, such as a lack of documentation showing that the right kinds of permission were obtained before building work started
  
• Building regulations not being met during building work, or the relevant paperwork being lost. Your policy will cover the cost of any work needed to correct the issue

Surely a potential buyer would only know whether any planning permissions are lacking, is by asking the council authorities.
So how can approaching them invalidate the insurance?

 

[denso13]

Surely a potential buyer would only know whether any planning permissions are lacking, is by asking the council authorities

Yes, but that's not how it works. A seller is giving comfort to the buyer and if you highlight your concerns to the council it puts it on their radar and they are more likely to investigate further. It then makes it more likely that the council will investigate which puts the company who gave you indemnity insurance in a bad position.

So how can approaching them invalidate the insurance?

I don't make the rules but it is a common get out clause. Check the fine print.

 

[denso13]

By the way, the quote below is from an insurance provider's website. I didn't make it up.

Indemnity insurance isn't a catch all as many believe.

"However, the policies become invalid if anyone makes an approach to the local council to ask about a lack of a building regulation certificate, therefore on no account should the local council be notified or contacted"

 

[denso13]

From this site and countless others https://amdsolicitors.com/buying-a-...consent-for-alterations-what-are-the-options/

d) The Policy will be invalid if any contact is made to the Council regarding the works thereby alerting them to the lack of Building Regulation Consent.

 

[Doug99]

So if I read this right:
1. The seller can offer to pay for an indemnity insurance policy to cover outstanding building control certifications, then hand over the keys and walk away from any further responsibility.
2. The buyer now has a piece of paper, but after some bad weather is concerned the extension/conservatory is leaking badly or swaying in the wind and worries it may not have been built iaw approved planning.
3. The only way to find out is to approach the local council..............which then invalidates the policy.

Confused?

 

[denso13]

1. The seller can offer to pay for an indemnity insurance policy to cover outstanding building control certifications, then hand over the keys and walk away from any further responsibility.

That's ok

2. The buyer now has a piece of paper, but after some bad weather is concerned the extension/conservatory is leaking badly or swaying in the wind and worries it may not have been built iaw approved planning

Maybe, but if it's leaking or swaying my first thought wouldn't be if it has building regs approval. But for the sake of this, ok.

3. The only way to find out is to approach the local council..............which then invalidates the policy.

No. The point is you can't take out indemnity insurance in the first place if you have already approached the council before the policy was taken out. Which seems to be the case here.

Confused?

Read the fine print.

 

[Doug99]

So the policy is ok if the first approach to the council is 'after' the policy was purchased?