Help in selling 'problem' properties - case study reviews & solutions:

Properties with ‘problems’ are often shunned by agents, as they can complicate and slow-down their sale’s pipeline.

However, if you were to engage the help of an asset underwriting expert, such as DUAL, you might easily sell the property and earn a higher sales commission from a grateful seller.

If you have a legal issue with a property, or think you may have a problem in listing a property for sale, then simply refer the matter to DUAL, who will assess the problem and provide insurance terms where possible so that a potential buyer can be protected in ownership.

Below, you will find 3 real-life case studies, some of which may be familiar to AIPP members, where DUAL were able to facilitate a complex property transaction by providing an insurance solution.

All have solutions, all are in Spain, but the underlying issues could be replicated in most countries around the world.

DUAL only sell their products through professional intermediaries; agents, lawyers, brokers, etc and are therefore keen to arrange meetings with AIPP member firms to discuss how they can apply their unique range of title insurance solutions to meet their clients’ needs. For more information, visit www.dualasset.com or contact Trevor Barnett, Business Development Executive, by email at tbarnett@dualgroup.com

AIPP are pleased to be working with DUAL to help agents, property owners and buyers protect themselves. AIPP is communicating with owners and buyers through its sister company, AIPO: Alliance of International Property Owners, the benefits and options of having the right insurances in place for their foreign properties.

• Property partly constructed 13 years ago on land with special protection from building
• Prospective buyers concerned – 9 metres of garage and 38 metres of terracing at risk
• No certificate of approval obtained and only current owners can apply – long process and danger of “opening a can of worms” by alerting City Council
• No time limit on when City Council could take action
• “Doomsday scenario” for buyer – demolition of affected area
• Sale at €100k likely to collapse

Solution arranged through DUAL Asset Underwriting:

• Policy issued for an insured value of €100k at a cost of €1000 plus €60 tax – single/one off premium
• 20 year term protecting the buyer should the local authority take enforcement action
• Cover included:
• Settlement costs if court order obtained
• Difference in the value of the property before and after any claim
• Demolition and/or reinstatement costs
• Legal fees
• Sale completed successfully

• Property built where basement, classified as a storeroom, now being used as a living area with
• 2 bedrooms
• Owners hold a First Occupational Certificate confirming building complies with local planning requirements
• Buyer only wants property if current living accommodation remains, but not prepared to proceed unless position is regularised
• Owner reluctant to approach local authorities to obtain a reclassification certificate – “stirring the hornets’ nest” and possibility of enforcement action

Solution arranged through DUAL Asset Underwriting:

• Policy issued for 20 year term covering “any enforcement action because the basement was being used as a living area with 2 bedrooms – although classified as a store room”
• Owner, Lender and successors protected for:
• Difference in the value of the property before and after a claim
• Demolition and/or reinstatement costs
• Legal fees/settlement costs
• Single/one off premium cost of €1300 plus € 78 tax
• Sale at €266k completed successfully

Issues:

• 20,000+ existing properties in Spain have no certificate
• Ideally obtain certificate from local municipality
• Fees involved
• Chance that municipality refuse to issue certificate
• Doomsday scenario – building has to be knocked down
• Delays to sales or sales collapse
• Dangers of “stirring the hornets’ nest”

Solution arranged through DUAL Asset Underwriting:

• Policy to protect owners for 10 years (mortgage lender automatically covered)

Single premium cost:

• Value up to €200K – €350 plus insurance tax
• Value €200k – €500K – €700 plus insurance tax
• Value €500K to €1m – € 1000 plus insurance tax
• Value in excess of €1m by referral to Dual Asset Underwriting

Criteria:

• Existing residential properties – built for 5 years without challenges
• No contact with municipality or town hall relating to licence
• No structural defect identified in survey
• Evidence of utility bills over 24 month period and own individual connection to public infrastructure
• Property not located in an area protected from development/building

DUAL Asset Underwriting is part of the DUAL Group, the international Underwriting Agents of Hyperion Insurance Group. The DUAL Group is the world’s largest underwriting agency.

DUAL Asset Underwriting was formed in 2014 to provide ownership, warranty & indemnity products to protect buyers, sellers, owners & lenders of real estate and mortgages throughout the world.

DUAL operate in both the residential and commercial property sectors offering a range of covers backed by their A-rated insurer partners. In the 12 month period of March 2018/19 DUAL Asset Underwriting issued policies in more than 35 countries through staff in London, Norwich, Manchester, Dublin & Poland.

DUAL only sell their products through professional intermediaries; agents, lawyers, brokers, etc and are therefore keen to arrange meetings with AIPP member firms to discuss how they can apply their unique range of title insurance solutions to meet their client’s needs.

DUAL Asset Underwriting provide:

• Extensive & unlimited underwriting capacity
• Widest range of covers of any title insurer
• Competitive premium pricing
• Direct access to legally qualified Underwriters & Specialists
• Choice of policies and bespoke policy wording to meet the requirements of each transaction
• Consultations with market leading Underwriters at no cost
• In claims situations – all legal expenses covered with no impact on sum assured
• Cover provided by recognised A-rated insurers
• Excellent claims track record

For more information, visit www.dualasset.com or contact Trevor Barnett, Business Development executive by email at tbarnett@dualgroup.com