Consumer Code forHome Builders

Carol BradySecretariat

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Why a Code?

Barker Review

OFT Market Study

An Industry Code by 2010 or…………….

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IF YOU ARE SELLING A NEW HOME THEN THE CODE AFFECTS YOU

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Exceptions

• Second hand homes

• Homes acquired by registered social landlords

• Self Build Homes

• Homes built by Architects’ certificates

• Homes acquired by Corporate bodies/partnerships for investments.

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Key elements• Treat customer fairly:

*clear service information;

* accurate details of the property;

* protect reservation fees & prepayments;

• Linked to the Warranty

• Compliance is monitored/management Board;

• Independent Dispute Resolution Service.

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Pre Contract Information• An explanation of the Home Warranty Cover;

• A plan showing the layout, appearance, plot position;

• A list of contents;

• Advise buyer to seek independent legal advice

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Pre Contract InformationAnd :

• The standards to which it is being built;

• The price and how long it is valid;

• Details of any management services/ costs and how administered

• Health & Safety Guidance;

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Exchange of ContractInform buyers of :

• Significant changes to design, size and value;

• Agree in writing extra works, items and costs with cancellation and refund rights;

• Advise of extra time in building programme as a result of extra work.

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Completion Dates

• Completion of foundation and floor – which quarter;

• Completion of roof – which month;

• Completion of decoration and installation of services – which week.

Certainty should increase as work progresses

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After –Sales Services

Buyer to be given :

• After sales contact;

• Details of the after sales service;

• Details of warranties and guarantees.

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Builders’ Obligations

Builder to:

• Train staff and agents;

• Ensure visibility of the Code;

• Provide accurate information;

• Operate a complaints procedure;

• HCA and Bank requirement.

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Consumer Redress

Stage 1 – The Builder

Stage 2 – The Warranty Body

Stage 3 – The Independent Dispute Resolution Service

Reparation – up to £15K

Failure to comply with IDRS findings may lead to expulsion from warranty scheme.

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Cases : Adjudication Findings

• Failure to provide adequate pre-purchase information or misleading purchase prices;

• Misrepresentation of property descriptions;

• Failing to build to agreed specifications;

• Breach of reservation agreement;

• Non repayment of reservation fees.

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Consumer Code forHome Builders

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www.consumercodeforhomebuilders.com