This is a question i've been emailed about on a number of occasions.
Unfortunately there is'nt really a hard and fast rule, with both parties (the purchaser and the vendor having strong arguments for why it shouldn't be them!
From a mortgage point of view there is no requirement for such indemnity insurance to exist, and many vendors will argue that they don't have the insurance in place protecting them so why should they pay for the purchaser?
Purchasers on the other hand naturally often want to protect themselves from any liability and argue that the cost of any indemnity insurance policy ought to be borne by the vendor.
At the end of the day the choice really comes down to the individual purchaser. Given the current market conditions you are likely to be in a strong negotiating position, is the vendor really going to jepordise a sale for the sake of a policy that usually costs under £100?
On the flip side is the cost of the insurance significant enough for you to push on the matter? Do you really need the insurance?
Ultimately the choice is yours. I'd always recommended asking your solicitor what they would recommend and advise.
