All of these documents are important for the person buying your property, and the purchaser’s solicitor/mortgage company will require them for security that the property has been built to a known standard and has a life expectancy of at least 60 years. The LABC is probably a Local Authority Building Control certificate, which will state that the property meets the minimum requirements of the Building Regulations. You may have employed an approved inspector to do this instead of the Local Authority.

The architect’s certificate warrants that the dwelling has been properly constructed in accordance with the regulations, plans and specifications. If it turns out that something is wrong then you may be able to sue the architect for making a negligent misstatement, but you would have to prove his mistake first. Some mortgage companies don’t accept these certificates and would request a new build warranty from a company such as CRL, or other provider of such service.

The provision of a building warranty offers a major difference from an architect’s certificate because if there’s a defect then the item in question is covered. You only have to show the existence of it, not negligence on the part of the professional concerned.

UK mortgage lenders require structural defects insurance from a recognised provider before they release funds for a property purchase, both when the house is brand new and if it’s less than 10 years old.

Carl Nelson, head of underwriting at CRL

Q: How important is Architects Indemnity Insurance and LABC, when selling?

A: Architects Indemnity Insurance, otherwise known as an Architects Certificate or Professional Consultants Certificates (PCC) is acceptable to a number of lenders, however, the vast majority require a New Home Warranty to be present on the property in order to provide finance to a purchaser. A New Home Warranty can be referred to as Latent Defects Insurance, Inherent Defects Insurance, Structural Warranties and more, but they all have equivalent meaning to.

The importance of Architects Certificates/PCC and Home Warranty is subject to lender requirements when either building or purchasing a property with external finance.

More information is provided in the Council of Mortgage Lenders Handbook, England & Wales, Part 2 (for each Lender), Section 6.7.1 with regards to Home Warranty Provision and 6.7.4 / 6.7.6 for Professional Consultants Certificates.

The ‘Indemnity Insurance’, or PCC, provided by an Architect is backed by their Professional Indemnity Insurance. You and your purchasers should be aware that the PCC is subject to the Architect (or PCC provider) trading at the time of a defect, damage or issue arising in the future. The PCC will also need to be transferable to future owners of the property. The Architects or Professionals liability for defects is subject to negligence being proved against them.

‘LABC’ refers to Local Authority Building Control. LABC Warranty are one of a number of Home Warranty providers and equivalent Home Warranty products are acceptable to lenders, as noted in their 6.7.1 CML entry. Home Warranties are first party insurance policies whereby the Insurer will indemnify the Policyholder (home owner) for defects in the design, workmanship or materials of the property which arise after practical completion. In some cases, the Developer or Builder will be responsible for the rectification of defects during the first 2 years of the policy – in your case, this period will have expired.

Should you wish to approach a Home Warranty provider to seek retrospective cover, please check the CML entry for the purchasers lender to see which Home Warranty provider(s) will be appropriate for your purchaser.

Please note, where the lender is a Building Society not listed by the Council of Mortgage Lenders, separate guidance is provided by the Building Societies Association.