You are here

Restrictive covenants indemnity insurance: Safety net or racket?

Andrew Cash and Catherine Stanbury consider the reality of a future owner’s liability for their predecessor’s breach of property restrictions

28 March 2017

The perversity of restrictive covenants has made the news again, with the Sun recently accusing a well-known housebuilder of contrived snobbery in curbing parking arrangements at a new residential development in Essex.

Oliver Smith, a tradesman who presumably would have been more than welcome on site in the construction stages, was unable to purchase a newly built Persimmon Homes property as the development covenants meant that, as a resident, he would not have been allowed to park his commercial vehicle outside.

In a way, Smith was lucky – he knew that the restrictions were unacceptable to him and so decided not to proceed. Far less fortunate are those buyers who are themselves happy to abide by a property’s restrictions, but are concerned about being punished for the breaches of their predecessors.

Of particular concern to...

Want to read on?

This article is part of our subscription-based access. Please pick one of the options below to continue.

Already registered? Login to access premium content

SUBSCRIBE for one User

Unlimited access to the entire SJ website for a full year for one user.

  • 10 issues a year delivered to you
  • Digital edition of the magazine for one user – sent to your inbox or accessible through the website
  • Access to premium content on the website
  • Access to the fully searchable online archive of Solicitors Journal, Managing Partner and Private Client Adviser, which spans over 13 years
  • Weekly email newsletter with all the latest news, analysis and features
  • Comment on SJ content and contribute to the SJ community online
  • Advanced search feature
  • Online support
  • Access to SJ app compatible with Android and Apple devices – coming soon!
  • 6 special focuses per year
  • Special offers and discounts on Solicitors Journal and IICJ events

Subscribe

CORPORATE SUBSCRIPTION

Your department or entire firm can subscribe to Solicitors Journal online, providing easy access for all who require it. Discount corporate subscription rates apply, based on number of users.

The Corporate IP Licence includes:

  • Digital copy of the magazine sent to individuals’ inboxes and accessible through the website. Solicitors Journal publishes 10 issues per year
  • Unlimited access to premium content on the website based on IP addresses
  • Unlimited access to the fully searchable online archive of Solicitors Journal, Managing Partner and Private Client Adviser, which spans over 13 years
  • Weekly email newsletter with all the latest news, analysis and features
  • Comment on SJ content and contribute to the SJ community online (username required)
  • Unlimited access to SJ app compatible with Android and Apple devices
  • 6 special focuses per year
  • Special offers and discounts on Solicitors Journal and IICJ events

The Corporate IP Licence is tailored to your firm, making it the most cost effective way for the firm to access Solicitors Journal, and enables the firm to remain compliant with copyright and our Terms and Conditions. This gives you the ability to print and circulate articles within the firm.

To enquire about a Corporate IP Licence for your firm, please contact our Subscriptions Manager on emily.beechey@solicitorsjournal.com.