What is Indemnity in Real Estate?

What is Indemnity in Real Estate?

Indemnity refers to a legal principle where one party agrees to compensate another for the loss or damage incurred due to actions, inactions, or incidents related to a property transaction or ownership. This protection can cover a wide range of issues, from financial losses due to title defects, to damages from undisclosed property conditions, or legal liabilities from accidents occurring on the property. Indemnity clauses are commonly included in contracts and agreements to ensure that any parties affected by such discrepancies or incidents can be made whole, financially protecting them against potential losses or claims.