1. Consumer Code for Home Builders Carol Brady Secretariat 1

2. Why a Code? Barker Review OFT Market Study An Industry Code by 2010 or……………. 2

3. IF YOU ARE SELLING A NEW HOME THEN THE CODE AFFECTS YOU 3

4. 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. 4

5. 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. 5

6. 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 6

7. Pre Contract Information And : 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; 7

8. Exchange of Contract Inform 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. 8

9. 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 9

10. After –Sales Services Buyer to be given : After sales contact; Details of the after sales service; Details of warranties and guarantees. 10

11. Builders’ Obligations Builder to: Train staff and agents; Ensure visibility of the Code; Provide accurate information; Operate a complaints procedure; HCA and Bank requirement. 11

12. 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. 12

13. 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. 13

14. Consumer Code for Home Builders 14 www.consumercodeforhomebuilders.com