GLOSSARY
INDEMNITY
An indemnity policy is a specialised form of insurance purchased to protect the buyer and/or the mortgage lender against potential financial loss.
It is typically used when there is a minor legal defect in the property's title, such as a missing building regulation certificate, an unresolved covenant breach, lack of formal access rights over private land or pages missing from a lease document.
Rather than spending months trying to rectify or investigate old legal anomalies, buying a relatively inexpensive one-off indemnity policy provides risk mitigation.
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