yes it is valid . indemnity bond is generally insisted upon to safeguard interests of the purchaser . since purchaser has paid consideration for purchase of property he needs to safeguard his interests against any claims made by third parties
Indemnity bond for property title
X has purchased a property from Y. X asks for an INDEMNITY BOND from Y to indemnify for any claims rleated to the title of the property. Is this valid and can X claim from Y if some third party disputes the title of the property in a court of law.
Asked 11 years ago in Property Law
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4 Answers
It is valid. On the strength of the indemnity bond the purchaser can bring a legal action against the seller in the event of any third party disputes emanating in respect of the property purchased by him.
Does it make a difference if the indemnity clause is included in the sale deed instead of making a separate indemnity bond. Do both carry the same level of safety
Asked 11 years ago
yes both carry the same level of safety . indemnity clause in sale deed should suffice . it is not necessary to have separate indemnity bond .
It makes no difference in law. There is no legal obligation to have a separate indemnity bond.