Corporate real estate transactions increasingly include W&I insurance

摘要

Warranty and indemnity (W&I) insurance is becoming an increasingly common feature of corporate real estate (CPRE) transactions involving the acquisition or disposal of corporate entities that own UK real estate assets. A CPRE transaction is different to what the UK property market recognises as a 'straight property deal' involving the transfer (from seller to buyer) of legal title to the relevant property. On completion of a straight property deal, the buyer acquires the property subject to contractual covenants and title matters affecting the property. However, on completion of a CPRE transaction, the buyer becomes responsible (and therefore potentially liable) for all past dealings of the entities acquired.