Professional Indemnity claims against surveyors and property related professions can be substantial...
When something goes wrong with the sale or letting of a property, the legal costs and size of the claim can quickly escalate into tens of thousands of pounds and even millions. Every scenario is different so here are ten examples of genuine claims against real firms.
Estate Agents
It was alleged that the insured undersold a property. Five months later it was resold for double the previous price. Amount Paid - £ 217,000
An employee of the insured altered the amounts and wordings of cheques, enabling him to obtain the proceeds. Amount Paid - £ 51,000
The insured advised a client to sell a farm by auction. The client later alleged that a higher price could have been obtained if the land and buildings had been sold separately. Amount Paid - £ 43,000
The insured valued a client's house and it was subsequently put on the market. In anticipation of a quick sale, the client purchased two properties. The house was overvalued and after a long delay was sold for a substantially lower price. A claim was brought for the cost of bridging finance and other expenses incurred as a result. Amount Paid - £ 34,000
Letting Agents
A notice to quit was served on the tenant of a farm and the insured failed to serve a counter notice under the Agriculture (Miscellaneous Provisions) Act 1976 within the required time limit. Amount Paid - £ 71,000
The insured were managing a client's property and replaced a clay roof with concrete tiles. Because the property was a listed building, planning permission should have been obtained. The local authority required that the clay tiles be refitted. Amount Paid - £ 23,000
Auctioneers
The insured were requested to sell a property at auction which they did but without the correct authority to do so. Amount Paid - £ 42,000
Quantity Surveyors
A client alleged negligence in the refurbishment of a large commercial property. Amount Paid - £ 1.1 million
The insured failed to advise their client, a local authority, of the correct budget provision required for the completion of a major development. The contract ran over budget. Amount Paid - £ 607,000
The insured prepared cost forecasts in connection with the construction of a number of restaurants at the start of each project. The monthly and year-end costings and forecasts were inadequate, making the contracts non viable. Amount Paid - £ 51,000
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