Home Owners > Solicitors and Legal Issues

New Build Solicitor Advice and Indemnity Insurance

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shipova:
Hi Guys,

We are going to buy a new build property and as per the suggested advice on the main website - not to use Builder's Recommended builder.

Initially they tried to convince that use theirs as all searches etc are done and best to use theirs.
Also offering full incentive on using their solicitor.

We have told them that we want to use our own solicitor and they have now agreed.
But they want to complete the sale quickly and suggesting that searches will not come through in less than 4 weeks or so.
And we will offer indemnity insurance for the same.
I have been trying to research about new builds and indemnity but not really able to find anything.
Can anyone advice on this please?

New Home Expert:
First time I've heard of a housebuilder wanting the new homebuyer to take out insurance against not being able to exchange contracts in 4 weeks, which unfortunately is the usual time in this industry and means that the buyer must have the 10% exchange contracts deposit available in the four weeks and a mortgage offer in principal.

That said, if you have sold your existing house or have the deposit ready, you are in a strong position to get the 4 weeks extended.

Housebuilders always say it is "easier" - "quicker" - "they have all the searches in already" to try and justify to you why you should hand over control to a firm that favours the housebuilder and not the client paying for it.

Stick to your guns.
If the house builder cancels your reservation, they have to refund the reservation fee less "reasonable administration expenses"

Who is the housebuilder requiring this indemnity insurance?


 

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