Agents selling new homes for developers are being issued with a consumer code created by a collection of agency and housebuilding organisations.
It seeks to ensure that buyers of new homes “are treated fairly and are fully informed about their purchase before and after they sign the contract”. It applies to buyers who reserve to buy a new or newly converted home built by a home builder registered with NHBC, Premier Guarantee or LABC warranty companies.
The code is the product of collaboration between the National House Building Council, the Construction Employers’ Federation, the House Builders Association, the Council of Mortgage Lenders, the Federation of Master Builders, the Home Builders’ Federation and several warranty insurance companies.
The code covers a wide range of points, most of which are undertaken already by the best agents.
This includes point-of-sale requirements such as having clear sales and advertising material; pre-contract information such as written explanations of warranty cover and a clear description of management charges; plus the availability of a plan showing the layout, appearance and plot position of any properties for sale but not yet completed.
The code also covers exchange of contact terms and conditions, making clear to buyers what cancellation rights exist, and issues such as extra work which may be required by a purchaser at additional cost.
Construction, completion and handover processes are also set out in the code, along with the requirement for an agent to explain a clear complaints and disputes procedure and the need for agency staff to cooperate with other professional advisors in the event of a dispute being raised by a customer.
The documents explaining the code and its repurcussions for agents, customers and house builders themselves are quite lengthy and available online here: