Asked by: Sumisa Davidsohnasked in category: General Last Updated: 13th May, 2020
What is defective title indemnity insurance?
Herein, what is a defective title?
A defective title is a piece of property or asset that has a publicly-recorded encumbrance, such as a lien, mortgage, or judgment. Because other parties can lay claim to the property or asset, the title cannot be legally transferred to another party.
Additionally, what is an access indemnity policy? The Absence of Easement Indemnity policy (also known as 'Access' Indemnity policy) has been specifically designed for the situation where a legal right to use an access to a residential and/or commercial property, and/or to use the service pipes, wires and cables connected to it cannot be established.
Moreover, how does indemnity insurance work?
Legal indemnity insurance covers the buyer and the mortgage lender in the event of any loss of value on the property as a result of the defect. However, if the seller refuses to pay, the buyer may need to negotiate with them over who covers the cost, or else walk away from the sale.
What is title insurance UK?
A form of indemnity insurance that is used in real estate transactions. Title insurance policies are issued by authorized title insurance companies. Generally, title insurance is used to insure against financial loss resulting from: Defects or disputes relating to the title of real property.