Q&As

If a property subject to an indemnity covenant is held as tenants in common and one owner dies, with the surviving co-owner purchasing the remaining share of the property, is it necessary to renew the indemnity covenant?

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Produced in partnership with Kevin Leigh of No 5 Chambers
Published on LexisPSL on 10/06/2020

The following Property Q&A produced in partnership with Kevin Leigh of No 5 Chambers provides comprehensive and up to date legal information covering:

  • If a property subject to an indemnity covenant is held as tenants in common and one owner dies, with the surviving co-owner purchasing the remaining share of the property, is it necessary to renew the indemnity covenant?

Unless the wording of the indemnity covenant describes the surviving owner’s interest as being solely limited to half the property (assuming they held equally and not in different proportions), then the surviving and now sole owner is still bound by the covenant. The existing indemnity covenant should be sufficient as it should describe the surviving’s owner’s interest by reference to their ownership of the land (which now means the whole land). In any event, taking ownership of the 'other' part of the land means the new owner takes subject to notice of the burden of the covenant.

See:

  1. Prac

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