House sale-planning permission

[rebelboy]

Am selling a house and when I got back from a weeks holiday I had a letter from my solicitor handling the sale. The house was built in 1974 and two years later a garage and kitchen extension was added. I bought the property in 1986 and added a conservatory in 2004 for which planning permission was not needed. The letter basically states that because they cannot find any consent for planning permission. even for the garage/kitchen extension which was built 10 years before I bought it, I need to take out Indemnity Insurance which they have arranged with a company called ISIS for £132. 60.

How can I be responsible for something that happened 10 years before I bought the property?

I have looked at the policy they enclosed and don't understand a word of it or what I am insuring for. I will phone them tomorrow but if anyone understands property law I would be grateful for some advice before I do so.

[The Builder]

I've taken out such policies many times in the past, Rebelboy. It's really becoming much more common now. Everyone is going to some ridiculous lengths to cover themselves......... especially lawyers and surveyors.
The theory is, that someone or something could crawl out of the woodwork, register an interest, and cause problems. Although exactly how the risk would manifest itself is just about impossible to conceive.

In fact, with Planning Permission, action cannot be taken after a period of four years has elapsed. Building Regulations is different. There is no official time limit.

You could apply to the Council for a "certificate of Lawfulness", but this would cost more than the policy, and still doesn't address the Building Regs position.

Not so many years ago, no Solicitor would even worry about this "historic" detail. Many people, if put in this situation, would tell the purchasers to get on with the purchase without the Indemnity. It's your decision entirely. They could always arrange their own cover if they were concerned.

[rebelboy]

Thanks for that Builder. We have actually exchanged contracts via the solicitor while I was away and the purchaser is due to move in on Friday 3rd Aug.I'm assuming this is a one-off payment?

[bushbaby_de]

This happens because conveyancers don't understand planning law. Normally a well worded statement about it complying with permitted development suffices. If you want to apply for a certificate of lawfulness this is £150 and takes 8 weeks so if you need some paperwork go for the indemnity as its cheaper in this instance (which is a one off payment) but you don't actually need either!

[rebelboy]

Thanks for the advice bushbaby_de. Sounds as if it's just another way of screwing a few quid out of you. Will phone my solicitor tomorrow at least armed with some facts. Thanks again to you both.

[bednobs]

if you have already exchanged, simply refuse to get the policy, and put the onus on the buyers to do so - they are hardly going to pull out over £130

[bushbaby_de]

I agree with bednobs. Unless the insurance was a condition in the contract they can't make you pay for this now you've exchanged.

[rebelboy]

Thanks for the further advice guys. Much appreciated. I tried phoning the solicitor handling the sale only to be told she's not in today.

On further inspection of the policy I notice that in the details section already filled in it is in the name of the solicitor!. Effectively I'm being told I have to pay the cost of the policy but it seems they have alread gone and authorised it. This letter arrived last Monday and I was away until Saturday 28th when I first read it. Intriguing to say the least. Until I can speak to her tomorrow I'm in the dark about this. Seems very unethical to me though

[bushbaby_de]

The solicitor may well have applied to get a quote done but unless it was specified in the contract that was exchanged they can't force you into buying it now. And if your solicitor agreed without your instructions i'd make them pay for it!

[rebelboy]

Well Bushbaby_de the outcome is that they have arranged the Insurance without my permission and are saying I will have to pay for it as they included it in the contract before exchanging. It seems the two who are dealing with the sale are blaming each other for the mix-up. Not happy but will need to take advice afterwards.I'm even thinking they never even bothered to search for the original planning permission, just went ahead with the Insurance.

[bednobs]

i would be inclined to make them pay/refuse to pay myself

[rebelboy]

They are taking it out of the money they are holding for me bednobs. Hence I need to seek advice after. But I don't think they have behaved with my interests at heart.

[bushbaby_de]

Its a pretty simple case of acting without your instructions. I'd be inclined to tell them they'll be reported to the Law Society unless they stump up.