A buyer was about to purchase a property. During negotiation, the buyer was informed that no occupation permit had been issued in respect of the property. When the buyer told the bank, the bank declined to accept the property as security for the proposed mortgage.
Action:
We agree to provide our comprehensive policy to both the buyer and the bank; agreeing to indemnify each of them for loss suffered if there is any defect in title as a result of the absence of the occupation permit. The bank then agreed to accept the property as security with the benefit of the policy.
