intouch

We look at some of the most common questions posed to our underwriters.

Q: Under your Insolvency Act policy, can you provide cover for transactions where parents are providing the cash deposit?

A: Yes we can. We have a specific lender-only product called the 'Insolvency Act – gifted deposit indemnity' to cover proposed transactions where a relative of the purchaser is providing all or part of the contracted deposit.

Premiums start at £70 for a policy limit of £60,000 and quotes can be obtained by calling 01603 617617, emailing enquiries@cli.co.uk, or online via Elite.

Q: Is your title insurance policy (SCIP) available when there is a known title defect?

A: Yes it is, though SCIP itself is only designed to cover unknown or unidentified title defects such as property fraud, seller misrepresentation and boundary disputes. Known title defects should be covered separately with a legal indemnity policy.

However, SCIP can be purchased alongside a legal indemnity policy to provide complete peace of mind for buyers. In this instance, we offer a 25% discount on the SCIP premium.

Q: Can a legal indemnity policy be included in an auction pack prior to a property being sold at auction?

A: Unfortunately, the answer is no. Our policies (and others in the market) contain a standard condition which only allows disclosure to bona fide purchasers, their lenders, lessees and respective legal advisors, unless our written consent is obtained first.

An alternative, acceptable solution typically used in this situation is to state in the auction pack that if any insurance policies or guarantees are in force for the property, full details will be disclosed after the purchase. However, we would still suggest that you check with us before deciding on a course of action.

If you have any questions that you'd like to pose to our experts, please drop us a line via enquiries@cli.co.uk.