Property investors buying homes ‘off plan’ have new safeguards for their cash under the recently released Consumer Code for Home Builders.
Under the code, builders must keep buyers informed about how construction is progressing.
This information includes builders to provide ‘reliable and realistic’ details regarding completion of the construction, handover dates and the date when the completion of the contract for purchase may be expected.
Buyers must also be advised that they have the right to withdraw from the purchase if there is an unreasonable delay in completing the construction of the home and about serving a notice to complete.
The code applies to all new home agreements made after April 1, 2010.
The National Home Building Council (NHBC) manage the code that represents several major building umbrella organisations.
