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. lets take a look at how a real estate indemnity agreement can be used to protect a vulnerable party.when it comes to buying real estate, many of us understand that finding the perfect piece of property is almost always impossible. that’s why we have real estate indemnity agreements. 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.