Q: Will title insurers provide cover for pretty much any title defect?
A: NO!!
Over the years, insurers have seen requests for cover for very similar title defects and hence specific products have been developed for the most common defects such as Search Indemnity, Chancel Repair, Restrictive Covenants, Buildings Regulations and so on. Where a problem does not fit one of these policies, cover can be considered under a bespoke “Defective Title” policy but cover is not always available.
The general principle is that if the insurer has a reasonable defence in the event of claim, then there is good chance that the enquiry can move forward. Other problems arise where a client has made an approach to third parties to discuss a problem – such as local authorities or the party having the benefit of a restrictive covenant or easement. In many instances this will have prejudiced the insurers position and affects the willingness of insurers to provide cover.
We recommend that you talk to us at the earliest opportunity regarding the defect and the proposed transaction and we can then work together to try and secure a successful outcome.
Need further advice? Please get in touch
Paul Davies ACII | Tel: 07772640498 | enquiries@titlepolicies.co.uk