Absence of Build over Agreement Indemnity Policy

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Sometimes problems arise when homeowners try to sell their property, which is partially or completely built over a public sewer. Conservatories and extensions are the usual culprits. If no construction contract has been concluded during the execution of the work, the water company has the legal right to enter the property to access the sewer, even if this means the demolition of the structure located above the sewer. However, the Water Company will avoid damage if possible and look for other ways to access the sewer system, but the risk remains. If a construction contract has been concluded, the water company does not have the right to remove or demolish the structure above the sewer. The other option is for the seller to give the buyer liability insurance to protect against financial losses caused by the property being built in a public sewer. This is the fastest and cheapest option, but whether or not insurance is available depends on the circumstances of the individual case. This potential risk is problematic if the conservatory was built before July 1, 2011. There is also a violation of legal servitude. Some sewer companies suggest that they can adopt a relaxed attitude if the work has been carried out in accordance with construction control permits and measures taken to protect sewer pipes.

There are two solutions for this: if no construction contract has been concluded, the seller must have a CCTV inspection of the sewer carried out and transmit the images to the water company. If the water company is satisfied that the sewer is in good condition, it will issue an administrative letter confirming that the sewer is in satisfactory condition. The administrative letter generally satisfies the buyer and his mortgage lender that the water company will not take steps to demolish the offensive structure above the public sewer system. (i) approve the condition of the sewer; and (ii) provide an administrative letter confirming that the sewer is in good condition and that they will not take steps to demolish the building above the supposed sewer. If the veranda was built before July 1, 2011, an explicit building permit or approved development right is required, and approval of building by-laws may be required. Risks covered: the cost of restoring the property in the event that access to the drain/sewer is required to carry out repair work and the increased costs incurred by the Water Authority to carry out sewer drainage/repair work caused by the location of the property above the sewer and which the AMF wishes to recover from the insured. According to Part H4 of Schedule 1 of the Building Regulations 2010, SI 2010/2214, the consent of the sewer system contractor is required for construction work via a public sewer. This includes both digested water and surface water channels. If a public sewer passes under land, the owner may not build on or within three metres of the sewer centre line without the consent of the sewer contractor. This consent is the „Build over Agreement“.

Consent is required before the start of the work and may be refused. Verandas and extensions are the usual culprits when plots of land are built on top of a connected sewer. If the construction work was carried out after the receipt of the sewer and no development agreement was concluded before the start of the work, the local water authority has the legal right to enter the property in order to access the sewer, even if this means that the structure above the sewer will be damaged or demolished. Although most local water authorities strive to avoid damage, they are not required to return the property to its previous state. If a construction contract has been concluded, the water company does not have the right to remove or demolish the structure above the sewer, and it must repair any damage caused by access and repair of the accepted sewer. Wastewater compensation may be excluded if a property was built over a public drain or sewer, whether or not there is a formal development agreement. The insurance policy covers the cost of repairing property damage or rebuilding work when the sewer contractor exercises powers to access the sewer and cause property damage, or the cost of diverting the sewer. This option is the fastest and cheapest option and avoids alerting the sewer funeral home to work with whom they might disagree. A funeral director may refuse to grant further construction through an agreement. If they refuse, it is unlikely that insurance will be available.

Even if consent is given, the owner may be asked to make changes to the property that can result in significant costs. Insurance is the most common solution. A construction agreement gives the Water Company peace of mind that the work to be done will not negatively affect the sewer below, and it also ensures that the water company continues to have sufficient access to the sewer so that it can be repaired and maintained. If you plan to build near or above a public sewer, you should contact the water company before carrying out the work to determine their needs. When buying a property, you will be offered a drainage and water search, which will include a plan indicating the location of the sewers adopted in relation to the property. If any supposed sewers are identified as within the boundaries of the property, your developer should make appropriate requests to the seller`s lawyer to determine if it has been overswritten. They should also provide you with a copy of the report, including the plan showing the location of the approved sewers. A construction agreement is a document in which the owner gives assurances to the local water authority that the work to be done will not negatively affect the public sewer system below or near. It also sets the local water authority`s access rights to the sewer so that it can continue to be repaired and maintained by it. If you plan to build near or above a supposed sewer, you should contact the local water authority before starting the work to find out their requirements.

He would not have required a construction agreement from the wastewater payer if the sewer had been private. In case of non-obtaining of the building permit for the works, the local authority is entitled to carry out an inspection and, if the works do not comply with the building regulations, to send a notice in accordance with section 36 of the Construction Act 1984 (BA 1984) asking the owner (who may not be the same person who ordered the work) to put it in order, or If this was not possible, restore the property to its previous condition. Failure to comply with a BA 1984 Opinion, Article 36 is a criminal offence and could result in prosecution of the owner and payment of the local authority`s fees to remedy the infringement. All sanitation companies have the legal right to access public sewers located on private land. These include sewers located under or near a property. Once the building permit is granted, funeral directors usually try to access the sewer without disturbing the property. If this is unavoidable, they will repair any damage caused to the reasonable extent. This is set out in the terms of the construction agreement. However, if a sewer has been overconstructed without consent, sewer companies have the right to access and protect the sewer by any means they deem appropriate.

This may include buildings that interfere with a public sewer or block access to a public sewer are altered or removed at the owner`s expense. In reality, however, funeral directors have machines that usually allow them to access a damaged pipe from a different and clear point and avoid damage as much as possible, but a risk remains. If the veranda was built more recently without an agreement on construction, the same sanctions and solutions will be available. It should be noted that if the veranda needed a building permit, the building inspector may need to see a construction agreement before signing the work. However, this means that many more homeowners will need prior approval from their local water authority in the form of a development agreement if construction work with new foundations, sub-foundations, piles or basements are to take place within a 3-metre radius or through an existing sewer or public drain. For more information on sewer compensation insurance / construction contract insurance or to get a quote, call our team on 0845 557 0845 (local rate) or 01293 880700 or email us at enquiries@lawsureinsurance.co.uk If you are considering selling your property and know that part or all of the property is built on an adopted sewer, It is worth discussing your options with your sponsor before offering the property for sale. However, the best option for the buyer is to insist that the seller enter into a retroactive construction agreement with the local water authority before exchanging contracts. While this is usually the most expensive and time-consuming option available, it offers both the buyer and their lender the most comprehensive and burdensome protection regarding this issue. This risk is that, for whatever reason, the local water authority refuses to enter into a retroactive agreement without any additional work being done that the seller cannot afford.

The fastest, cheapest and most common option to deal with the risk arising from building a property over a supposed sewer is for the seller to give the buyer a claims insurance policy that protects future owners from financial losses incurred in the event that the local water authority causes damage to the property while accessing and repairing an underlying sewer. This option is not always available as it must first be approved by the buyer`s lender. If a party to the transaction has informed the local water authority of the existence of the building built above the presumed sewer, no insurance is available. .