• Who Pays For Contingent Liability Insurance And Absence Of Easement Insurance: The Buyer Or The Seller?

    By Guest on 09th Mar 2017

    So confused about this it's doing my head in!

    I'm selling my mum's maisonette to settle her estate and from previous advice on this site I was told the solicitor deals with this. The sale collapsed because the previous buyer's solicitor wanted the lease rewording for access; I told them to jog on because of the cost. They were offered Absence of Easement insurance which they refused. Now I have a new buyer and to guard against any more issues with regard to the lease I was prepared to put in the AoE and also the CLI because I couldn't find any evidence of it being taken out.

    I'm confused though because according to this link http://www.fridaysmove.com/why-contingent-building-indemnity-insurance-policy-sometimes-must/13286 it's down to the buyer not the seller.

    I was sent a policy quote by my solicitor for both AoE and CLI and the wording suggests it's for the buyer. My parents had no issues with access, nor do I! So before I say yes, go ahead, can someone tell me who's responsible for taking it out?

    Many thanks

  • 2 Answers

    By Guest on 12/03/2017

    The insurance is for the benefit of the buyer but is usually paid for by the seller, unless there's an argument that it isn't necessary. The question of whether contingent buildings indemnity insurance is required is usually pretty straightforward so I'll assume it is required therefore either your solicitor takes it out at your expense or the buyer's solicitor does at your expense.

  • By Guest on 13/03/2017

    Thanks for your reply. :) I have been told it is required, but it wasn't made clear to me who pays.

  • Post Your Answer


  • Do you want to be informed of further comments / replies? Yes No

Ask a Question

Search