More transparency, more risk? How the push for upfront material information could affect legal indemnity insurance
Summary
The article argues that the move toward upfront material information in property listings could increase awareness of title defects and historic risks, potentially strengthening the role of legal indemnity insurance in conveyancing. While greater transparency may help buyers make better-informed decisions, it may also lead to more scrutiny, more claims and possible changes in underwriting, premiums and policy terms.
Why it matters
Residential property surveyors increasingly contribute to material information and property risk reporting, so understanding how early disclosure affects transaction risk is important. The article also highlights how historic defects and title issues may be interpreted by consumers, which can influence survey findings, client expectations and transaction outcomes.
Key points
- Upfront material information may expose title issues earlier in the sales process.
- Historic defects such as restrictive covenants, easements and missing building regulation certificates may appear more serious than they are.
- Greater public visibility of title matters could increase awareness and potentially claims or enforcement action.
- Insurers may respond with tighter underwriting, higher premiums or narrower policy terms.
- Legal indemnity insurance may become more central to keeping transactions moving.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
