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 3 years ago in Property Law from Hyderabad, Andhra Pradesh
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
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 3 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.