Who Ya Gonna Call?

ATE Insurance Providers, of course

House prices are on the rise and Ghost gazumping is becoming a real issue. What do you do combat this issue? Call Derek Acorah, run the risk of losing money or strike a happy ‘medium’ by taking out insurance against the risk?

We all know that ATE’s are an insurance policy taken out after a dispute arose to protect against the risk of having to pay the opponent's legal costs if you lose. But they can also be taken out when purchasing a house to offset the risk of a purchase going through for example due to Ghost gazumping. Nevertheless is it an unnecessary extra expense as the cost of buying a home soars or a smart way to cover you against the rising spectre of a house deal falling through?

Such issues can cost the buyer (or seller) up to £1,200, consider this against an ATE policy of less than £100 and rather than getting the hump from a gazump surely it’s a shrewd investment. A recent survey commissioned from Populos seems to agree. When prospective house buyers were questioned 80% agreed that they would be concerned at the risk and 60% said they would be likely to buy the policy. When asked ‘Should your conveyancing solicitor have the ability to offer you conveyancing Insurance policies?’ 77% said yes.

With house prices rising month on month, new builds not meeting Government targets experts believe that gazumping in whatever form is likely to increase and so does your risk of losing money on the deal.

Taking out an ATE policy gives house buyers peace of mind, solicitors are guaranteed payment even on transactions that fall down. If the idea of Ghost gazumping is scaring the living daylights out of you, then hopefully this will help you see through the issues.

David Burgess | Recruitment Consultant | South West

david@douglas-scott.co.uk