Newsletter
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The New Homeowners Code |
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Many conveyancers and builders have been taken by surprise by the new Homeowners Code. It applies to newly built homes. Whilst it is, in theory, voluntary a builder cannot offer a NHBC, or any of its equivalents without it. It came into force on 1st April 2010. Under the code all buyers of new properties are to be given a written reservation agreement, with full and detailed plans and clear, truthful materials showing the contents (white goods, curtains, etc) of the home, service charges, layout, appearance, plot position etc etc. A specific person must be appointed to deal with questions. The buyers choice of lawyer cannot be restricted in any way - such as by offering to pay for all legal costs if such-and-such frm is used. If a reservation fee is taken full details must be provided as to how long the reservation lasts and the seller must not attempt to sell to any other party during that period. The buyer nevertheless has a right of cancellation throughout. The fee must then be returned so the practice of non-returnable deposits must end. The sale contract must contain an anticipated date of completion and cannot just remain silent as many do at present. Another important feature is the buyer’s right to terminate the contract if there has been a substantial alteration to the house or unreasonable delay in finishing its construction. The Code provides a specimen clause which says that after six months the buyer can cancel. No longer can a buyer be locked into a contract and left to wait because his builder has decided to go off site and build some other party’s house.
For more information on conveyancing completions please consult Hannah Airey |