Whose insurance must be notified of exchange?

• A. Buyer
• B. HM Land Registry
• C. Lender
• D. Seller

Answer: (C)

From the moment contracts are exchanged, the property must be insured to protect the lender’s security. The lender has a financial stake in the property, so they require notification that there is a buildings policy in force from the exchange date and that the policy names the lender as mortgagee (or records the lender’s interest). This ensures that if the property is damaged before completion, the lender can protect their loan and the security remains intact. In practice, the buyer should arrange buildings insurance from the date of exchange, with the lender named on the policy or noted as mortgagee.

HM Land Registry deals with title, not insurance. The seller isn’t the party whose insurance needs to be notified in this context, and while the buyer is responsible for insuring the property, the crucial point is that the lender’s interest must be reflected in the insurance details.