what stage of planning to take out restrictive covenant indemnity insurance ?

[Rob Wisbech]

bit confused after initial discussion with Insurance broker . i assumed the insurance would be taken out before i submit planning , but his opinion was to take it out after submitting the plan and awaiting for intrerested bodies  to claim title of a restrictive convenant. surely by then its too late to get insurance?

 

whats your experience ?

 

Rob.

[Mr Punter]

We asked for this from the seller of a plot, where they had already got outline pp.  The whole area had similar non development covenants dating from the 1930s but were never enforced.  They are often used during development / sale of new estates to protect the sale values.

[Conor]

Insurance is to cover you for unforseen events. Waiting for somebody to say you're in breach means that no insurance company will touch you as you and the insurer KNOW you'll be sued if you proceed. It's like taking out car insurance mid way through a crash.

[ProDave]

What covenant do you think you might be breaching?

 

We extended a previous house in breach of a covenant "No building without the permission of xxxx Council"  I mistook getting planning and building regs from that council as having their permission under that covenant.

 

It was not until we sold the property that the buyers solicitor said we were in breach of that covenant and that is when we bought the indemnity policy to allow the sale to proceed.

[Rob Wisbech]

the covenant is limiting the number of houses per acre, the original owner of the title no longer exists  ( closed building company) but in principle there may be some successor in title.

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the restricrive covenant was placed