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What is a deed of indemnity?
A deed of indemnity is an agreement between two or more parties, the purpose of which is to specify the actions and consequences which will result should a particular event or events occur. The agreement essentially attempts to negate or limit the risk which one of the parties is exposed to.
What is the purpose of an indemnity agreement?
When the term indemnity is used in the legal sense, it may also refer to an exemption from liability for damages. Indemnity is a contractual agreement between two parties. In this arrangement, one party agrees to pay for potential losses or damages caused by another party.
What does signing an indemnity mean?
If you've signed a contract, chances are you've seen an indemnity clause. In its simplest form, indemnity means that one party in the contract is responsible for compensating another for loss, damages, and/or injury incurred as a result of that party's actions.
What is an indemnity agreement in real estate?
With a real estate indemnity agreement, one party is pledging to protect another from any kind of financial loss or from a lawsuit of some kind. With a real estate indemnity agreement, one party, usually the buyer, agrees to take full responsibility for a mistake or a problem caused by the other.