Title defects 'to drive solicitor PI claims' - Professional Indemnity for Solicitors

6/08/2008

While solicitors may not be held directly responsible for a fall in property prices, title defects could be one factor behind professional indemnity (PI) insurance claims in the sector in the coming months.

Such is the assertion made in an article by monetary guidance resource Financial Advice.

Meanwhile, should an increased number of claims arise, the article predicts that a corresponding growth in PI premiums for solicitors may be expected to follow.

The resource explains: "They will be held responsible for any title defects and face being sued by past customers.

"There will be solicitors in the UK frantically checking their PI cover to see if they are protected."

Financial Advice adds that the likelihood that historical title defects will emerge is to grow as more repossessions take place in a tightened property market.

The warnings follow observations from debt consultancy Thomas Charles that more Britons are securing unconventional types of lending - such as credit card debts - against their property than has historically been the case.

Managing director James Falla suggests that this could increase the number of homeowners facing repossession further in the future.

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PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.

(c) 2008 Adfero Ltd.

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