Home economics

This you can insure against

As a seller you can take ownership change insurance, and for home buyers there are home buyer insurance.

This you can insure against

A home purchase is about security, both for the buyer and the seller.

Among other things, the investigation and disclosure obligation is an important framework for trade. However, it can still reveal hidden defects that allow you as a seller to end up in a responsibility and who can put the buyer in a difficult situation.

However, this is a relationship between both home sales and purchasers can insure themselves.

For the seller, it is a change of ownership. The buyer, on his part, can draw a home buyer insurance.

In some areas, these insurance policies coincide with the coverage in ordinary legal assistance insurance. The difference is, among other things, that both assurances cover the other party’s costs if they are sentenced. It does not do a regular legal aid insurance. Nor does it cover any claim for damages.

However, the consumer authorities are skeptical of these assurances, because, for example, it is the insurance companies themselves who decide whether to cover the costs.

No automatic

According to Prof. Thomas Bartholdsen, Vice President of Consumer Affairs, it is the Council’s assessment that ownership and home buyer insurance is a complicating and also expensive factor in housing.

Disposal Act (Excerpt)

§ 3-1: The property is defective if it is not in accordance with the requirements for quality, equipment and anna that follow the agreement.

  • There may be a shortcoming even if one mistake first appears later.
  • The seller responds and for a defect that occurs later if the cause of the defect is a breach of contract from the seller.

§ 3-2. General Requirements for Condition

The property has a shortage if he does not:

  • Requests for the objects that the corresponding property is commonly used for, or

§ 3-3. Area Failure

  • If the property has less land (empty) than the buyer has recruited, there is still no shortage but the area is substantially less than the seller has stated or the seller has borne himself particularly blameless.

§ 3-7. Missing information about the property

  • The property is defective if the buyer has not been informed of the property which the seller knew or had to know and which the buyer had reason to claim.

§ 3-8. Incorrect information about the property

(1) The property has a defect if the property does not correspond to information provided by the seller to the buyer. The same debt if the property does not correspond to information given in an advertisement, in a sales prospect or in another marketing on behalf of the seller.

§ 3-9. Ownership sold “as he is” e. l.

  • Even if the property is sold “as he is” or with similar general retention, the property still has a lack of compliance with sections 3-7 or 3-8. The property also has a shortage if it is substantially less in a position than the buyer had reason to pay out of the purchase price and attribute.

§ 3-10. Visiting and anna research

  • The buyer can not make debt as insufficient the buyer knew or had to know when the deal was concluded.
  • If the buyer prior to the agreement has entered into investigated property or without reasonable reason, if requested to follow a request from the seller for investigation, the buyer can not claim any debt as the buyer should not be aware of at the time of the investigation.. This does not matter, however, if the seller has been grossly deedless, dishonest or otherwise acting contrary to good truce.
This you can insure against

No, you are not denied the purchase price for this

– We rarely advise whether to purchase such insurance or not, but we see that many consumers are in the mood of what the insurance covers and how they work and that is a challenge, he expands.

For example, it’s not the case that only one has signed such insurance, all financial concerns will be resolved. Both insurance policies have limitations on what is covered and it is the insurance companies that decide whether the insurance can be used. – For the home buyer insurance, the company will evaluate if you have a good case or not. If the case is bad you may be refused to carry it. Therefore, there is no automatic in obtaining expenses for attorney with such insurance. And at the Consumer Council, we regularly receive inquiries from angry home buyers, who tell about insurance companies trying to talk them away from doing things, says Bartholdsen.

– But there are also examples of buyers who have had a good case and are happy that they had such insurance. At the same time, it is quite possible that they would be gained through the legal aid cover in home insurance or by own means.

Buyer load

The owner shift insurance operates according to Bartholdsen, so that the seller has attempted to insure parts of his liability to the insurance company, which determines whether or not you as a buyer receive a defect or not.

– The company typically says that this should be understood and that you do not get a new bathroom even if there are moisture problems because you bought an old bathroom and should realize that it could be moisture, he says.

– Many experience it so that only when the company understands that they may risk losing a case, they will consider paying. There is therefore reason to believe that they are assessing the risk of losing a lawsuit.

He tells about several cases where the buyer has gone to court and where it has taken a long time before he or she has received the money.

– And a case that goes over several years will of course be a burden for the buyer.

May be reasonable to have owner-switch insurance

Leader of Legal Department of Homeowners’ Association, Anders Leisner, will not discourage anyone from taking out such insurance policies, including because they provide coverage not found in other policies.

– As the housing market is today, I would recommend housing sellers to consider owner-change insurance, he emphasizes.

– If you have full control of the home standard and at the same time have given all the information you can, you can consider the necessity of such insurance. But at the same time it can be a good assurance that you do not have the control you thought you had.

Leisner adds that what separates the home buyer insurance from ordinary legal aid insurance is that it also covers any costs incurred..

May incur high costs

Postdoctor at BI Norwegian Business School, Harald Benestad Anderssen, emphasizes that the expense of any dispute may easily exceed the amount limit in a regular legal aid insurance.

– Legal aid in ordinary housing insurance usually has an upper limit of 100. 000 kroner, nor does it cover any costs to correct deficiencies. Such restrictions do not have an owner-change insurance, and in such a way it will be significantly better than a standard legal aid insurance. An owner-shift insurance can therefore be a cheap insurance against something that can be very damaging, economically, “he says.

Benestad Anderssen believes that the individual housing seller and buyer must ask the question of how much chance one wishes to take and possibly based on the coverage already.

– For those who consider a home buyer’s insurance, it should be noted that case law shows that the costs of a dispute can quickly come up to hundreds of thousands of dollars. The worst thing that can happen is that you go to trial and lose and be charged with costs. So not only that you get the cost of the fixes, you also have to pay money for legal costs, both your and the other party, explains Benestad Anderssen.

Change of Ownership

This you can insure against

A liability insurance for the homeowner.

ownership insurance

  • It covers the seller’s possible liability for compensation or price reduction pursuant to the Disposal Act.
  • Covers the seller’s legal costs, provided that they use the insurance company’s lawyers.
  • It is the home buyer who has to claim compensation / price reduction for the insurance company, possibly through the real estate agent who has provided the sale.
  • The insurance covers defects and costs incurred, limited to the sales price, up to a maximum of NOK 10,000,000.
  • Home buyer can cover his costs. A concrete assessment will be made, based on the Disposal Act and the Dispute Act.
  • Cost: 0.2% – 0.5% of sales price, depending on housing type.
This you can insure against

You will hardly get this information in a value tag

This is a liability insurance for the homeowner, and shall cover his or her liability for damages that may result from the Disposal Act. This means that if there are significant errors or deficiencies after the buyer has taken over the property, the buyer may require this cover through the change of ownership.

However, the insurance does not mean to sell fritas for its liability to the buyer.

“Homeowner is always responsible for home buyers according to the Disposal Act”, writes the website Jussportalen on its pages. The law portal is run by people with legal education.

The website further explains that ownership change insurance means that the seller does not have to negotiate directly with the home buyer.

“Therefore, a home buyer will usually be referred to his claim to the owner-shift insurance company in the first place. But on the other hand, home buyers get the advantage that he or she can promote his claim to two parties, both the seller and the insurance company, “they write.

The owner-shift insurance is also a legal aid insurance and covers all costs incurred by the seller. The premise is that the insurance company accepts that the seller has a liability.

– Also covers the counterparty’s costs

According to lawyer Tommy Ravndal at Protector Insurance, which sells owner-ship insurance, there are many who think it is a non-life insurance.

– But it’s wrong. It does not allow it to pay for damage, such as for example in a car insurance. It is our lawyers, based on current laws and legal sources, who make an assessment of whether the seller is responsible for the deficiencies, and if that is the case, money will be paid, “he says, telling them that they have their own board that receives complaints.

– If we consider that the seller is not responsible under the law, we will reject the case. In that case, the buyer may, if necessary, take the matter on his own or send a complaint to our appeal committee or alternatively to the Finance Appeals Committee.

Buyer must leave a case

If the seller of a home has signed a change of ownership, this must be stated by the estate agent and that it must also be stated in the sales assignment.

– The real estate agent acts as a distributor of this type of insurance, but he or she receives no commission from the sale, explains Ravndal.

It is the home buyer who has to file a case if he or she can get money from a change of ownership.

– Seller does not need to do anything. It is the home buyer who must promote the matter either to us or through the real estate agent.

However, if the seller is to cover all his or her expenses through the change of ownership, it is a prerequisite that the company’s lawyers handle the case.

– If seller chooses to use his own lawyer and none of us, the insurance will not cover his attorneys expenses, only possible compensation to the buyer, Ravndal points out..

homeowners insurance

An insurance you as a buyer may be offered to buy at a home purchase.

This you can insure against

Photo: Getty Images

This is an insurance you as a buyer will be able to get an offer to buy at a home purchase. There is no insurance you can trade free, but as the real estate agent offers you at the time of the contract.

house purchases insurance

  • The insurance covers the necessary costs of complaint and any legal dispute with the seller or owner-ship insurance.
  • If home buyers choose to use a lawyer other than their insurance company, only attorney fees are limited to public rates.
  • Costs incurred are covered only if the insurer’s own lawyers have been used.
  • If the insurance company rejects the case, the home buyer may still proceed on his own. If he wins, the insurance company will still cover the necessary costs.
  • Costumes from 3900 and up to NOK 9200, depending on housing type.
This you can insure against

This does not cover home insurance

The home buyer insurance is what is called a legal aid cover, similar to what most people have in their home insurance. It gives you no compensation for defects, but can cover the cost of any event.

Unlike the legal aid cover in the home insurance, the home buyer insurance has no deductible. However, it has a time limit of five years, some legal aid coverage does not have.

The usual legal aid cover, on the other hand, has a limit of NOK 100,000, which the home buyer insurance does not have. Here you can get all the costs that may incur. And if you lose, the insurance will also cover the costs incurred.

The premise is that the insurance company thinks it is a good thing that it is so-called procedural. On the other hand, such a requirement does not exist in the ordinary legal aid cover.

If the company refuses to use the home buyer insurance, home buyers may appeal to the decision, either to the company’s own board or to the Finnish Appeals Committee.

Covers costs, even at a lost case

– The home buyer insurance is a direct consequence of the owner-shift insurance, which sells legal counseling, and it means that the counterparty will not want anything to win the case out of time because the buyer has unlimited coverage of costs, says Dag Are Børresen to click. no. He is a lawyer at Help Insurance, which provides home buyer insurance.

Børresen does not feel that they as a company have a particular interest in making it difficult to meet demands, as claimed in some contexts.

– We believe our lawyers are not stricter than other lawyers. They do the same reviews. We would soon lose customers if it looked as if we rejected procedural issues, he says.

– In addition, as an insurance company, we are required to have a separate appeal system, and if you proceed with another lawyer in spite of our refusal and progress, we undertake to cover the costs.

He adds that if the company decides to go to a case but still loses a home buyer insurance will cover the costs and any other costs.

This you can insure against

Photo: Getty Images

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