Warranty for a new build – consider defects claims when signing the contract
When buying a new property, we expect it to be in perfect, faultless condition. However, the reality is often different, and you may encounter defects and unfinished work. What should you look out for, and how does the law protect you?
Choosing a developer: the foundation of success
One of the key steps when buying a new build is choosing the developer. Trustworthy, established developers offer a guarantee of quality and reliability. It may seem like obvious advice, but bear in mind that some developers may face a lack of funding or even be on the verge of bankruptcy. The issue is not only construction defects, but also various shortcomings or loopholes in contracts, which can then make the subsequent claims process more difficult.
New-build quality: reality vs expectations
Expectations of flawless new-build properties often differ from reality. Under pressure and in a rush, builders are forced to meet deadlines and often do not focus sufficiently on quality. The best strategy for future owners is to identify problems early, ideally during construction, and use the services of a technical inspector. Even so, some defects only become apparent while the property is in use; you can rely on the claims period for these.
Pre-handover inspection of the property
Even before the property is completed, the developer will invite you to a pre-handover inspection, where you will have the opportunity to check its technical condition. Record all defects and unfinished work in the inspection report. Although you can make a claim under the warranty later, this may be more complicated and you may, for example, need to prove that the defects were not caused by improper use of the property.
Warranty vs liability for hidden technical defects
Do not confuse a warranty with liability for defects. If a hidden technical defect that was not apparent at the time of purchase becomes evident within 5 years, the seller is liable even if they were unaware of the defect. By contrast, a warranty is commonly provided by developers or construction companies for new flats and houses for a period of two years. Unlike liability for defects, there is no legal entitlement to a warranty; it is a contractual arrangement between the two parties.
In conclusion, buying a new-build property can bring various expectations that do not always match reality. A thorough inspection of the construction can identify potential defects early enough for them to be remedied before the property is handed over. Defects that become apparent during use of the property can also be claimed.