SC 4.6.4 and SCPC 6.6.4 have provisions for indemnity covenants. When a seller enters into a covenant-either positive or negative, he is bound by it, even after the property is disposed. He is however not liable if the wording in the covenant make it clear that he is not liable after the sale of property. When he is bound by such a covenant, he can be held liable for any breach of covenant and can be sued. Thus, it is common for sellers to obtain an indemnity covenant from the buyer of the property. Such a buyer will in turn obtain an indemnity covenant from his buyer when he sells the property. But it is important that such an indemnity covenant should be mentioned in the contract for it to take effect. Some conveyancing solicitors make an express provision in the contract through a special condition. Photo courtesy: rfduck
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