Section 38

[Viv1988]

Hi there,

I am due to exchange contracts today however our buyers solicitors has now requested the below fees in the image.

I have never been made aware the whole time I have been living in my property (new build for 2 years) of these insurances, therefore feel that it is not my responsibility when selling?

Could you advise me please?

[EnglandPi]

Tagging des8

[des8]

The section 38 agreement is between the developer and local authority that the developer will construct the road to required standards so that LA can adopt it.
The buyer of your property is looking for insurance to cover him having to contribute to the cost of bringing the road to the required standard if the developer fails.
I would ask your conveyancer to make enquiries of the LA to find out if that Section 38 agreement included a bond from the developer, a bond which would pay out if the developer failed.
If it does that indemnity policy is IMO superfluous

Regarding rent charge I think the other side are being cheeky!
If their mortgage provider's requirements aren't satisfied, that is their problem!

However to be pragmatic on both items, is it worth refusing to agree and so lose the sale?
Of course the other side might not want to lose the purchase over a couple of hundred pounds.
Negotiation might be a way forward, but chat briefly with your conveyancer.