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To indemnify another party is to compensate that party for losses that that party has incurred or will incur as related to a specified incident.
What is an example of indemnification?
A common example of indemnification happens with reagrd to insurance transactions. This often happens when an insurance company, as part of an individuals insurance policy, agrees to indemnify the insured person for losses that the insured person incurred as the result of accident or property damage.
What is an FHA indemnification?
FHA may require lenders to indemnify, or reimburse, them for losses on problematic loans. Previously, an indemnification was typically only required when a mortgage loss resulted from fraud; however, recent changes by FHA expanded those parameters to include indemnification for general non-compliance issues as well.
What does indemnification mean in a contract?
Indemnification, also referred to as indemnity, is an undertaking by one party (the indemnifying party) to compensate the other party (the indemnified party) for certain costs and expenses, typically stemming from third-party claims.
What is indemnification mean in real estate?
Indemnification in real estate defines the buyer taking full responsibility for what should be the sellers fault otherwise. For example, you agree to purchase a property with minor flaws caused by the seller. The previous owner might have felled a tree which crashed into the roof.
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What is the purpose of an indemnification agreement?
Indemnification, also referred to as indemnity, is an undertaking by one party (the indemnifying party) to compensate the other party (the indemnified party) for certain costs and expenses, typically stemming from third-party claims.
What does indemnification mean in real estate?
To indemnify means that the seller will reimburse the buyer for a loss or liability. To defend means that the seller will pay the buyers legal fees for suits that arise from specific risks articulated in the contract.
What does indemnification mean in mortgage?
In the B2B world, loan indemnity is a valuable protection against the sudden inability to repay a mortgage or loan. For example, if a borrower suffers a disabling event that impairs their ability to pay their secured debt, like a mortgage, their loan indemnification clause kicks in to pay the debt.
Related links
indemnification agreement - SEC.gov
(ii) any nonfulfillment or bdocHub of any covenant, agreement or obligation to be performed by either of the Buyers or Parent pursuant to the Transaction
Sep 9, 2022 9. INDEMNIFICATION. Subject to the limitations and exclusions in this Agreement, Xilinx agrees to defend against claims, suits, or proceedings
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