The Consumer Code for New-Home Ownership

Transcription

1 The Cnsumer Cde fr New-Hme Ownership The Cnsumer Cde t prtect cnsumers and supprt builders f new-hmes in England, Wales, Sctland and Nrthern Ireland FIRST EDITION: OCTOBER 2017 The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 1 f 35

2 Welcme t The Cnsumer Cde fr New-Hme Ownership Prmting Standards f Practice t Prtect Cnsumers The Cnsumer Cde fr New-Hme Ownership ( the Cde ) is prmted by CRL Management Limited (CRL), ne the U.K. s prviders f Structural Hme Defects Insurance prtectin, the cmpany that maintains The Cnstructin Register. The Cde was established n 1st Octber 2017 t advance certain standards f practice, in respect f the marketing, selling, purchasing and aftersales service in respect f new hmes in the United Kingdm, by requiring builders and develpers, wh are listed in The Cnstructin Register, t adhere t the Cde. CRL, as Spnsr and prmter f the Cde, will ensure that it is cnsistently implemented and will mnitr its effectiveness. Members f The Cnstructin Register wh agree t adhere t the prvisins f the Cde include respected lcal builders and significant natinal building cmpanies, sle traders and award-winning PLC develpment crpratins alike, all f whm sell their hmes with the benefit f a CRL Structural Defects Insurance Plicy (CRL Plicy), r ther plicy in similar terms t thse ffered by CRL. Where a Member f The Cnstructin Register, r their Agent, is fund t be in breach f the standards set ut in the Cde, CRL can and will apply a range f sanctins, including stripping the ffender f its Membership and remving it frm The Cnstructin Register. CRL has built its wn reputatin and success n delivering high levels f service cupled with innvatin, decisiveness and transparency. CRL brings these attributes t this imprtant cnsumer prtectin initiative. Over and abve the prtectin and security affrded by a CRL Plicy, the Cde prvides cnsumers with redress and easy access t a free Dispute Mediatin Service (DMS) and an Alternative Dispute Reslutin Scheme (ADRS), fr any cmplaints that may be levelled against a Member within tw years f the date f the CRL plicy certificate. The Cde als benefits secnd and subsequent Buyers f the Hme in respect f after sales matters reprted within tw years frm the start f the CRL Plicy. Nthing cntained within the Cde affects a Buyer s existing legal rights and des nt replace any existing legislatin regarding the sale and marketing f Hmes t cnsumers. What Cnsumers Can Expect CRL is determined t ensure that: All hme buyers are treated with fairness and respect by Members f The Cnstructin Register and their Agents; Any Vulnerable Cnsumers will be affrded apprpriate supprt t help assist them thrugh the hme buying prcess; Individuals and families will be prvided with reliable infrmatin t allw them t make infrmed decisins when standing at ne f life s mst significant milestnes i.e. when purchasing a new hme; Buyers will knw what standards f cnstructin and service t expect frm Members f the Cnstructin Register; and Whether the Buyer is an individual buying a city centre pied-à-terre, a cuple lking t dwnsize their empty nest, r a grwing family bursting at the seams, they will be well infrmed and have access t mechanisms designed t deal with any prblems that may arise after handver. The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 2 f 35

3 CONTENTS: Welcme t The Cnsumer Cde fr New-Hme Ownership... 2 Understanding The Terms Used In This Dcument What the Cde Cvers The Status and Scpe f the Cde When the Cde Des Nt Apply Cntact Infrmatin The Requirements f the Cde Adpting the Cde Mandatry Cmpliance with the Cde fr all Members Making Sure Cnsumers Have Access t the Cde Uphlding Custmer Service Standards Training f Custmer Service Staff Sales & Advertising Standards Identifying and Respnding t the Needs f Vulnerable Cnsumers Pre-Cntract Stage - Befre the Sale f a New Hme Imprtance f Obtaining Prfessinal Advice Pre-Purchase Infrmatin Cntact Details, Cmmunicatins and Questins Structural Defects Insurance Cver Health and Safety Visitrs t Sites Under Cnstructin Reserving a Hme Part Exchange Schemes Exchange f Cntracts Stage - Entering int a Cntract fr a Hme The Cntract f Sale The Timetable fr Cnstructin and Cmpletin Terminatin Rights Alteratins and Changes t the Hme after Cntract Prtecting Buyers' Depsits and Pre-Payments Infrmatin n Cmpletin Pst Handver Stage In Occupatin f a New Hme Handver and Occupatin f a New Hme The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 3 f 35

4 5.2 Prmting Excellence in After Sales Supprt Health and Safety Living n Cnstructin Sites Helping t Reslve Cmplaints & Disputes Cperatin with Prfessinal Advisrs Definitin f a Dispute Cmplaints Prcedure Mediatin Under the Cde Escalatin f A Dispute t The Alternative Dispute Reslutin Scheme Disciplinary and Sanctins Prcedure Imprvement Prgramme Financial Penalties Suspensin f a Member frm The Cnstructin Register Remval f a Member frm The Cnstructin Register Mnitring the Effectiveness f the Cde Member Reprting Requirements CRL s Cmmitment t Cntinuus Imprvement Summary f CRL Cde Mnitring and Risk Regime Gals and Key Perfrmance Measures in the Cde The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 4 f 35

5 Understanding The Terms Used In This Dcument Adjudicatin The prcess by which an independent Adjudicatr reviews evidence and statements presented by ppsing parties under the Alternative Dispute Reslutin Scheme described in Sectin 6.5 belw. Adjudicatr The independent Adjudicatr appinted pursuant t the Alternative Dispute Reslutin Scheme described in Sectin 6.5 belw. Administratin Fees Fees incurred by the Member pursuant t the Member s reasnable administrative csts and the management f the prperty during the Reservatin Perid. Agent A persn, sle trader, partnership, cmpany r ther rganisatin (such as an Estate Agent) wh is authrised t act n behalf f the Builder r Develper t create a legal relatinship with the Buyer. Alternative Dispute Reslutin Scheme (ADR) The independent adjudicatin scheme perated n behalf f CRL by The Prperty Ombudsman. Applicant A persn, cmpany r firm that cmpletes an Applicatin. Applicants may be either a Builder(s) r Develper(s) undertaking a ne-ff r multiple Cnstructin Prjects. Applicatin The cmpletin f a membership frm by an Applicant relating t the Cnstructin Register. This definitin is als deemed t mean an applicatin fr membership renewal relating t the Cnstructin Register. Apprved Inspectr A persn, sle trader, partnership, cmpany r ther rganisatin authrised t carry ut building cntrl wrk under the Building Act 1984 r equivalent legislatin in the territry in which the Hme is lcated and/r the Cnstructin Prject is undertaken. Builder A persn, sle trader, partnership, cmpany r ther rganisatin that builds Hmes, and is a Member. Building Cntrl Authrity An authrity charged under statute with the implementatin f Building Regulatins r similar functin f building cntrl in the territry in which the Member perates r in the territry in which the Cnstructin Prject is undertaken. Building Regulatins The statutry building regulatins in frce in the territry in which a Hme is situated r the Cnstructin Prject is undertaken at the time the plans r dcuments which relate t the Hme r the Cnstructin Prject are submitted t a lcal authrity r equivalent bdy with respnsibility fr making decisins regarding a Hme r a Cnstructin Prject. Building Surveyr An experienced and prfessinally qualified surveyr emplyed r appinted by CRL t inspect the prgress f cnstructin f a Hme, in line with the CRL Inspectin Stages Guide and t ensure adherence t the CRL Technical Standards in frce at the date n which the dcumentatin setting ut the detail f the relevant Cnstructin Prject is submitted t the relevant Building Cntrl Authrity. A Building Surveyr may als be appinted by CRL t mediate between the Member and the Buyer as part f the dispute mediatin described in Sectin 6.4 belw. The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 5 f 35

6 Buyer A Custmer wh ges n t make a Reservatin and/r buy a Hme Cde, the; CRL Cde, the The Cnsumer Cde fr New-Hme Ownership Cde Spnsr CRL Management Limited Cmpletin The date n which the Buyer takes legal wnership f the Hme frm the Builder r Develper. In Sctland, this prcess is knwn as the Cnclusin f Missive and Date f Entry. Cnstructin Prject(s) The cnstructin r cmpletin f a new Hme(s), r the cnversin, renvatin r extensin f an existing prperty r as is alternatively defined in any plicy f insurance relating t the specific Cnstructin Prject. Cnstructin Register The recrd f Applicant Builders and/r Develpers that have been accepted by CRL fr membership. Cnsumer An individual persn r grup f individuals, as ppsed t a crprate entity r partnership, ut f the general ppulatin, wh is a buyer f gds and services. Cntract A legally binding agreement cnfirming the terms and cnditins f the sale f the relevant Hme. In Sctland, this dcument is knwn as the Missive. Cntract Depsit A depsit paid by the Buyer t the Member r its Agent t secure the purchase f a Hme. CPD Cntinuing Prfessinal Develpment which is the structured prcess whereby Member s staff wh wrk in sales and marketing, cntracting, cnstructin and handver f Hmes t Buyers, will be made familiar with the requirements f the CRL Technical Standards, the terms f any Structural Defects Insurance ffered by CRL, and with their bligatins/respnsibilities under the Cde. CRL prvides n-line and inpersn training and persnal and prfessinal develpment events, including Webinars. Details f frthcming events can be fund n CRL Apprved Lenders List The list f Banks, Building Scieties and ther Lenders wh rutinely and regularly accept a CRL Plicy as satisfying a Mrtgage requirement that a Structural Defects Insurance Plicy Certificate is in place fr the Hme. This list can be fund n c-r-l.cm lenders list CRL CRL Management Limited, Registered Office: Village 5, 15th Flr, 110 Bishpsgate, Lndn, EC2N 4AY CRL Dispute Mediatin Service The prcedure fr mediating a Dispute set ut in Sectin 6.4 belw. CRL Hmewner's Guide A guide made available by CRL in hardcpy and nline fr Members t give t Custmers and Buyers. The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 6 f 35

7 CRL Membership Rules The mandatry CRL Membership Rules fr Cnstructin Prfessinals with which all Builders and Develpers wh wish t becme Members f the Cnstructin Register must agree t abide. CRL Plicy The Structural Defects Insurance plicy ffered by CRL and issued by the relevant insurer. CRL Technical Standards The CRL Technical Standards f Cnstructin, which are available via the CRL Web site and which all Builders and Develpers wh are members f the Cnstructin Register are required t adhere t when undertaking Cnstructin Prjects. Custmer A persn r persns ut f the general ppulatin f Cnsumers, making enquiries abut buying a Hme but wh has nt yet made a Reservatin. Develper A persn, sle trader, partnership, cmpany r ther rganisatin that arranges Cnstructin Prjects and is a Member. Dispute An unreslved cmplaint made by the Buyer f the Hme t the Builder r Develper in accrdance with the Cde. Exchange f Cntracts The pint at which the Cntract is exchanged between the Member and the Buyer. In Sctland, this prcess is knwn as the Exchange f Missive Hme A prperty that a Member has cnstructed, cmpleted, cnverted, renvated r extended as part f a Cnstructin Prject. Fr the avidance f dubt, the definitin f Hme excludes thse prperties listed in Sectin 1.2 belw. Insurance Certificate A certificate issued by CRL n behalf f an insurer in respect f Structural Defects Insurance r any ther insurance prduct ffered by CRL. Inspectis A mbile applicatin, a prprietary data cllectin tl, cmmissined and wned exclusively by CRL, perating n ios and Andrid platfrms t allw CRL s Building Surveyrs t mnitr Cde cmpliance and cllect evidence and uplad results immediately int CRL s Management Infrmatin Systems. Management Services The maintenance, supply, service bligatins and charges the Buyer may be liable t pay n Cmpletin f the Hme purchase. In Sctland, this is knwn as Factring Member A Builder r Develper that has cmpleted an Applicatin which has been accepted by CRL, has paid all necessary membership and/r renewal fees, has abided by the CRL Membership Rules and whse name appears n the Cnstructin Register. Mrtgage Finance prvided t the Buyer under the terms f a lan agreement by a Bank, a Building Sciety, r ther Lender, fr the purchase f a Hme. The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 7 f 35

8 Part Exchange Scheme A prcess by which the Member agrees t use the Buyers existing prperty as part payment fr a new Hme. Prperty Ombudsman, The An independent and impartial service fr the reslutin f a Dispute between the Buyer and the Builder r Develper, n behalf f CRL. The Prperty Ombudsman Milfrd Huse, Milfrd Street, Salisbury, Wiltshire, SP1 2BP Purchase Price The price that has been agreed upn by the Buyer and the Builder r Develper fr the relevant Hme and which is set ut in the Cntract relating t that Hme. Reservatin A legally binding agreement between the Buyer and the Builder r Develper, giving the Buyer an exclusive perid f time t enter int a Cntract t buy a Hme at a specified Purchase Price. Reservatin Fee Any fee paid by the Buyer as part f a Reservatin which will either be deducted frm the final Purchase Price f the Hme r refunded in the event the Reservatin is cancelled (minus any Administratin Fees). Reservatin Perid An agreed perid f time stipulated within the Reservatin during which the Member agrees nt t ffer the Hme fr sale t anyne ther than the Buyer. Snagging The prcess f inspectin necessary t cmpile a list f minr defects r missins in building wrks fr the Builder r Develper t rectify in a timely manner. Specificatin A descriptin f the main materials used t cnstruct the Hme, (including: wall, rf and flr cnstructin; types f bricks and rf tiles; windws; internal and external drs; bathrm and kitchen tiles; bathrm fittings; furnishings; appliances; central heating; and vacuuming systems) Structural Defect A Defect in the design, wrkmanship, material r cmpnents f the lad bearing elements f the Hme, r the failure f the Member t cmply with Building Regulatins r CRL Technical Standards which adversely affects the structural stability r resistance t damp and water penetratin f the Hme, which is discvered and ntified t the Insurer during the relevant Structural Defects Insurance Perid. Territry Any Cuntry, Regin, r jurisdictin in which the Cnstructin Prject is being undertaken and in which the Member perates. Vulnerable Custmer A Buyer, wh by virtue f their persnal circumstances is especially susceptible t detriment,. This culd be because, but is nt limited t, the Buyer's age; infirmity; lack f knwledge f the English language; r disability; [r thse wh fr reasns f experience, knwledge r illness find the prcess difficult. The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 8 f 35

9 1 What the Cde Cvers 1.1 The Status and Scpe f the Cde The Cde is a vluntary cde f practice that is intended t influence and raise standards f practice in the United Kingdm f Builders and Develpers and their Agents in the marketing and selling f Hmes and in the prvisin f aftersales supprt t Buyers. The Cde applies t all Hmes which will be cvered by a CRL Structural Defects Insurance Plicy, r ther plicy in similar terms t thse ffered by CRL, and fr which a Reservatin r Cntract was signed n r after the 1st Octber [N.B. date will be revised nce the Cde has received Stage 1 Apprval]. All Members, agree t cmply with the terms f the Cde and shall ensure that their Agents, staff and emplyees have been adequately trained t ensure they understand the bligatins impsed n the Member by the Cde and the steps required t be taken by them t ensure that the Member cmplies fully with its duties and bligatins under the Cde. 1.2 When the Cde Des Nt Apply The Cde des nt apply t: Hmes acquired by a Husing Assciatin r ther scial landlrds fr rent Hmes acquired by crprate bdies, partnerships, charitable rganisatins r ther business rganisatins Prperties taken under a Part Exchange Scheme Hmes purchased by individuals fr investment purpses e.g. n a buy-t-let basis Self-built Hmes cnstructed under a cntract between a Builder and an individual fr the individual's wn ccupatin Hmes built under a Prfessinal Cnsultant s Certificate, unless a CRL Plicy has als been issued in respect f such Hmes The Cde als des nt apply t: Claims fr sums that exceed the limits set ut in Sectin belw Persnal injury claims Claims fr lss f prperty value r blight Claims in respect f a defective title t the Hme Claims that are cvered by a CRL Plicy The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 9 f 35

10 1.3 Cntact Infrmatin Buyers and Custmers can request additinal infrmatin relating t the Cde, including cpies f the CRL Hmewner's Guide, tgether with respnses t Frequently Asked Questins (FAQs), and find the results f mnitring audits, satisfactin surveys and Adjudicatins n the Cde web page (see belw). Ways t cntact the dedicated Cde team: Web: N.B. Web site will be published nce the Cde has achieved Stage 1 apprval. N.B. address will becme perable nce the Cde has achieved Stage 1 apprval. Phne: N.B. Dedicated Nn-Gegraphic lcal telephne number will be prvided, nt a premium rate service, and advertised nce the Cde has achieved Stage 1 apprval. Mail: The Cnsumer Cde fr New-Hme Ownership Custmer Services Team c/ CRL Management Ltd Village 5, 15th Flr 110 Bishpsgate Lndn EC2N 4AY The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 10 f 35

11 The Requirements f the Cde 2 Adpting the Cde 2.1 Mandatry Cmpliance with the Cde fr all Members It is mandatry fr Members t cmply with the requirements f the Cde fr which a Reservatin r Cntract was signed n r after [1 Octber 2017]. Members and their Agents will be required t ensure that all sales materials, Reservatin Agreements and assciated practices and prcedures cmply with the requirements f the Cde. 2.2 Making Sure Cnsumers Have Access t the Cde Members must make the Cde available, free f charge, t any Custmers interested in the purchase f a Hme. The Cde shuld be made available in multiple frmats, including: Written frmat in plain English; Large print frmat in plain English; On-line, mbile and easily dwnladable frmats in plain English; and In ther frmats in respnse t reasnable requests The Member shuld ensure that the Custmer has sufficient time and ability t review the Cde befre they agree t purchase a Hme. In rder t cmply with this requirement: A cpy f the Cde and the CRL Hmewner s Guide shuld be prvided t the Custmer tgether with the Builder r Develper s Reservatin Agreement and, shuld the Custmer require additinal supprt r infrmatin, the Builder r Develper shuld advise the Custmer where they can btain such supprt and infrmatin. The Member must display a cpy f the Cde prminently in public areas related t the Hme sales prcess, e.g. in the Sales Office, in a Shw Hme, and in the Agent's ffice. Guidance relating t the use f the Cde lg and ther related lgs will made available and updated frm time-ttime n the Cde Web Page The Member must prvide the Custmer with infrmatin abut the peratin f the Cde and in particular abut the prvisins f and access t the CRL Dispute Mediatin Service. In additin, the Custmer shuld be made aware f the scpe f the Cde, its exclusins and the need t make all cmplaints t the Member within tw years f Cmpletin f the sale f the Hme. Members must adequately train sales staff, and ensure that their Agents are adequately trained, t identify and apprpriately respnd t the needs f Vulnerable Cnsumers. CRL make apprpriate CPD training and helpful resurce material available. 2.3 Uphlding Custmer Service Standards Members shuld ensure that they have apprpriate rganisatinal systems and prcedures in place t enable them t accurately and reliably meet their cmmitments t cmpliance, service, prcedures, infrmatin and mnitring in relatin t the Cde. Management versight systems shuld be put in place t mnitr staff perfrmance and peratinal adherence t the requirements f the Cde. The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 11 f 35

12 It is recgnised that the prcesses and cntractual transactins invlved in buying a Hme and mving in are daunting and amunt t prbably the single largest transactin that a Custmer will make, perhaps in a lifetime. Accrdingly it is imprtant that the Member is sensitive t the needs f the Custmer and is prepared t direct the Cnsumer twards independent supprt services and resurces such as: Hme Owners Alliance Citizens Advice Tel: England, Sctland, Wales: Nrthern Ireland In additin t prviding the abve infrmatin t Custmers, Members may feel it is helpful t make a list available f prfessinal advisrs in the vicinity f the Cnstructin Prject r Hme, including: - Lawyers Chartered Valuatin Surveyrs Engineers Independent Mrtgage Advisrs Freign language translatin services The Imprtance f Custmer Satisfactin The Cde places great imprtance n the need t cntinuusly prmte Custmer satisfactin, as mre particularly detailed in this Sectin 8. Members must adpt measures t canvas feedback and t analyse the results f such feedback, with a view t imprving the effectiveness f the Cde in peratin. These measures shuld include: 1) Custmer Satisfactin Surveys; 2) Annual Self-Assessment; 3) Being subject t Audit; 4) Quarterly and Annual Reprting Items 3) and 4) will be undertaken by CRL as Cde Spnsr. 2.4 Training f Custmer Service Staff Initial familiarizatin training and nging CPD must be prvided t all staff and emplyees f Members that have cntact with Custmers and/r Buyers, t ensure that they understand their respnsibilities under the Cde. CRL will prvide regular CPD and Webinar training mdules suitable fr all thse invlved in the different sales and develpment prcesses: frm sales staff in The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 12 f 35

13 shw hmes, t Site Cnstructin Supervisrs, and staff respnsible fr Health & Safety n site. Details f the CPD curses prvided/rganized by CRL will be made available n the CRL Web site Members' staff, emplyees and Agents must be able t explain clearly t Custmers and Buyers what they shuld expect at each stage f the buying prcess fr a Hme, with respect t sales & advertising, infrmatin and data cllectin requirements, the peratin and terms f any Part Exchange Scheme, the Reservatin and Cntract prcess, the terms f any CRL Plicy, and details f the after sales services. All Members' staff, emplyees and Agents wh are likely t have cntact with Custmers r Buyers, including site cnstructin persnnel, shuld be trained n hw t identify ptentially Vulnerable Cnsumers. CRL make apprpriate CPD training and helpful resurce material available. Members must mnitr hw familiar their staff and emplyees and Agents are with the requirements f the Cde and must be able t demnstrate that all relevant staff, emplyees and agents have undertaken refresher curses/ CPD at least n an annual basis in the fllwing areas: Their bligatins/respnsibilities under the Cde The scpe f The CRL Technical Standards Health & Safety Plicy The terms f any CRL Plicy Staff Training Leads t Custmer Satisfactin The Cde requires Members t mnitr and reprt n Custmer and Buyer satisfactin. The training regime that the Member adpts shuld reflect this need. Members must prvide key staff with accredited Custmer service training. Particular attentin shuld be placed n training the Member's staff, emplyees and Agents in the need t be bth sensitive and respnsive t Vulnerable Cnsumer s enquiries and needs. 2.5 Sales & Advertising Standards The Cde has fur crnerstne principles with respect t the sales and marketing prcess and requires Members t: Put the Custmer r Buyer first Be hnest and fair Respect the Custmer s r Buyer s privacy Be respectful f and diligent in the handling f Custmer s r Buyer s data The Member and its Agents must ensure that all sales and marketing material relating t the Cnstructin Prject and the Hme is clear, truthful, current and capable f being easily understd by Custmers r Buyers. All dcumentatin must use plain English, all pictrial images and maps must be accurate and t a stated scale and be cnsistent with all wrds, plans r images cntained in the dcumentatin. All marketing material must cmply with then current laws gverning advertising see Sectin belw. The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 13 f 35

14 Members must state in all advertising and sales material that they are members f the Cnstructin Register and cmply with CRL Technical Standards and the Cde. All sales and marketing material must display the Cde lgs in use at the time f the cmmencement f the Cnstructin Prject Prperty misdescriptin and misrepresentatin Members must act in accrdance with all relevant legislative requirements in frce in the territry in which the Cnstructin Prject is t be undertaken relating t their cnduct f sales and marketing activities. If there is any uncertainty as t whether advertising r sales material is legally cmpliant, befre presenting it t a Custmer r Buyer, the Member shuld review its cntent against and/r btain apprpriate prfessinal advice as t its cmpliance with the then current prvisins f the fllwing: The Cnsumer Prtectin frm Unfair Trading Regulatins 2008 The Business Prtectin frm Misleading Marketing Regulatins 2008 The applicable UK Advertising Cdes Phne Services Authrity Cde f Practice Any equivalent legislatin r guidance in the territry in which the Cnstructin Prject is t be undertaken Any legislatin r guidance which replaces and/r supersedes any f the abve Members must nt mislead Custmers r Buyers in any respect f the purchase Undesirable Trading Practices High-pressure selling techniques shall nt be used by Members t influence a ptential Custmer's r Buyer s decisin. This includes, but is nt limited t: Encuraging the Custmer t make a Reservatin by implying that there are ther parties interested in the Hme r that there is an imminent price increase due, where neither is true. Offering a financial incentive fr an immediate decisin n a Reservatin r a sale. Encuraging the Custmer t make a Reservatin by implying that the pprtunity t alter the standard specificatin and t persnalise the Hme where the stage f cnstructin wuld still allw it will nt be available fr Reservatins made at a later date. Members must ensure that all their staff and emplyees (including part-time staff and Agents) are aware f the bligatin nt t engage in high-pressure selling techniques. Members must prvide apprpriate training in this respect and reprt cmpliance f bth its directly emplyed sales staff and Agents emplyed t market and sell the Cnstructin Prject. 2.6 Identifying and Respnding t the Needs f Vulnerable Cnsumers The Cde requires that Members have in place a plicy and prcedures fr the early identificatin and prtectin f Vulnerable Custmers. Members shuld: Create, publish and maintain a Custmer and Buyers Charter with a clear plicy n Vulnerable Custmers Cmply with guidance ffered by statutry agencies and Nn-Gvernmental Organisatins n Vulnerable Custmers Prvide their staff, emplyees and Agents with guidance and training n: The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 14 f 35

15 The Member 's key legal respnsibilities Their respnsibilities t Custmers and Buyers The identificatin f Vulnerable Custmers Understanding their bligatins in relatin t identifying and supprting Vulnerable Custmers including hw t prvide apprpriate advice and assistance suitable t their needs Cnsidering the pssible effects f any vulnerability declared by a Custmer r Buyer n the prpsed transactin Seeking clarificatin frm Custmer's r Buyer's and/r their representative in circumstances where it becmes apparent t the Member that they may be vulnerable. Enquiries must be f a nature that are cnsiderate, unlikely t ffend and can in n way be interpreted as discriminatry Seeking further infrmatin frm an apprpriate rganisatin specialising in a specific vulnerability in circumstances where the Member is advised f r perceives a Custmer r Buyer may be affected by that vulnerability Ensure that persns identified as being Vulnerable Custmers understand the Cde Acknwledge and cater fr the needs f Vulnerable Cnsumers and help them t make infrmed decisins by ensuring that the prvisins f the Cde and the Cnsumers rights under the Cde have been apprpriately cmmunicated Where language is a barrier, recmmend that a suitable translatr (wh may be a family member) is present t explain the nature f any prpsed transactin t the Vulnerable Custmer Use plain, simple language t explain the nature f their prduct r service Prvide alternative means f cmmunicatin t suit different vulnerabilities: e.g. large print, r facilitating a freign language translatr t be present Make clear any cmmitments, accumulative csts, additinal purchases r future cnsequences the Vulnerable Custmer is agreeing t, especially if these are nt immediately bvius. Replay a Vulnerable Custmers decisins and behaviur back t them: fr example, duble-checking their purchase chices r pinting ut t the Vulnerable Custmer the cumulative cst f the variatins requested by them Make sure the Member is easy t cntact and interact with: fr example, prviding a Service/Maintenance line, emergency call number, and a respnsive custmer services system Recrd any reasnable adjustments made t the sales prcess (r reasns why they were nt made) when dealing with an identified Vulnerable Custmer Be able t prvide evidence that the plicy n Vulnerable Custmers has been implemented fr example by: Staff training recrds An peratinal system where a custmer identified as vulnerable can be flagged as such fr future dealings The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 15 f 35

16 3 Pre-Cntract Stage - Befre the Sale f a New Hme 3.1 Imprtance f Obtaining Prfessinal Advice The purchase f a Hme is a mmentus time in any Buyer's life, as the Buyer r Custmer is cnsidering entering int ptentially lng-term cmmitments and taking n significant respnsibilities. Members must advise Custmers and Buyers t appint a suitable legal adviser t carry ut the necessary legal frmalities f buying the Hme and t represent their interests. The Member shuld nt restrict the Custmer s r Buyer's chice f legal representative and shuld, if the Member has such infrmatin available, prvide the Custmer r Buyer with a list f independent slicitrs r licensed cnveyancers in the vicinity f the Cnstructin Prject. If a Custmer r Buyer asks the Member fr recmmendatins regarding ther types f prfessinal advice, fr example n hw t secure suitable mrtgage finance, r an independent assessment f the valuatin f the Hme, then the Member shuld prvide the Custmer r Buyer with a list f independent prfessinal advisrs in the vicinity f the Cnstructin Prject frm whm they may chse t seek independent advice. If the Member receives a cmmissin fr the recmmendatin this shuld be made clear t the Custmer r Buyer bth verbally and in writing when presenting the Custmer r Buyer with a Reservatin r, if later, when asked fr a recmmendatin by the Custmer r the Buyer. 3.2 Pre-Purchase Infrmatin Custmers and Buyers must be prvided with pre-purchase infrmatin that is written in plain English and clearly sets ut the imprtant facts that the Custmer r Buyer needs t help them make an infrmed decisin abut purchasing a Hme. In all cases this infrmatin must include: A cpy f the Reservatin A Marketing Brchure and Plan, detailing: The size f the Hme Specificatin f the Hme Schedule f finishes fr the Hme Internal layut f the Hme Site lcatin, plt psitin f the Hme and access arrangements Architectural appearance f the Hme Details f Cmmn Areas Purchase price f the Hme Utilities prvided t the Hme and their lcatin Energy perfrmance rating fr the Hme Any Mbility adaptatins available fr the Hme A cpy f any Structural Defects Insurance Plicy, tgether with supprting dcumentatin as detailed in Sectin 3.4 belw. Any Hme Owners Assciatin Manual r Management Services Schedule, detailing: Payments that will be required frm the Buyer Annual Budget and prprtinate part required t be paid by the Buyer Organisatins t which the Buyer will be cmmitted and an estimate f the assciated cst The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 16 f 35

17 Details f any Leasehld, Fee Farm Grant r ther title arrangements t which the Hme is subject. A plan shwing the lcatin f and, if available, details f the prperties t be included in future phases f the Cnstructin Prject; anticipated dates f future phases f the Cnstructin Prject; and the anticipated date by which the Cnstructin Prject is expected t be cmpleted Landscaping and infrastructure plan fr the Cnstructin Prject which includes the Hme and future phases. Schedule f cntents in the Hme that are included in the purchase price Specificatin fr the Hme including details f csmetic finishes An estimate f when the Hme will be ready fr ccupatin A clear prcess fr the Buyer t make variatins and/r additins t the specificatin f the Hme Other material infrmatin relating t the standards t which the Hme is being built, including cnfirmatin that the Hme is t be built in cmpliance with the Building Regulatins and the CRL Technical Standards 3.3 Cntact Details, Cmmunicatins and Questins The Member shuld infrm the Custmer r Buyer hw their questins will be addressed and wh t cntact during the sale, purchase and transfer f wnership f the Hme. Queries frm the Custmer r the Buyer shuld be respnded t prmptly and in writing and, in any event, n later than 5 wrking days f receipt f a written r verbal inquiry frm the Custmer r the Buyer. The Member must prvide the Buyer with the names, cntact numbers and addresses f thse key persnnel wh will respnd t any cmplaint raised by the Buyer under the terms f the Cde. The prcedure fr Disputes is cvered in mre detail in Sectin 6 belw. 3.4 Structural Defects Insurance Cver On entering int a Reservatin, the Buyer shuld be presented with a sample f the CRL Plicy r the Structural Defects Insurance Plicy that will be issued in respect f the Hme. The fllwing infrmatin shuld be prvided: A sample cpy f the CRL Plicy/Structural Defects Insurance Plicy The CRL Hmewners Guide A cpy f the CRL Apprved Lenders List A cpy f the CRL Inspectin Stages Guide detailing the different stages at which the Hme will be inspected during its cnstructin and immediately prir t Cmpletin It is the respnsibility f the Builder r Develper t infrm CRL when each stage has been reached, t allw CRL t arrange fr an Apprved Inspectr t visit the Cnstructin Prject and assess the wrk that has been carried ut. Apprved Inspectrs are instructed t visit the Hme sufficient times in rder t assure themselves that the CRL Technical Standards have been met. 3.5 Health and Safety Visitrs t Sites Under Cnstructin Members must ensure that the site where the Cnstructin Prject is being undertaken cmplies with the requirements f the Cnstructin (Design & Management) Regulatins 2015 (as amended and/r superseded) r any equivalent legislatin in the territry where the Cnstructin Prject is being undertaken and that there is suitable and safe access t the live cnstructin site befre permitting site visitrs t access the site. The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 17 f 35

18 Members must take int cnsideratin the relevant needs f the site visitr when making the decisin as t whether access is suitable and safe. Members shall ensure that site visitrs are accmpanied at all times by an apprpriately trained and experienced member f the team wrking at the site. All visitrs t a site where a Cnstructin Prject is being undertaken must be infrmed abut the apprpriate Health and Safety precautins they shuld persnally take when visiting the site, and f any relevant risks, befre they are allwed access t the live cnstructin site. Emergency arrangements shuld als be clearly explained by the Member t all site visitrs, and a register f visitrs must be maintained n site. Site visitrs shuld be required by the Member t sign a dcument cnfirming that they have received a site inductin and have understd the Health and Safety advice given t them fr the site visit. Cpies f the signed dcuments shuld be kept with the register f visitrs. Apprpriate persnal safety equipment (e.g. hard hat, hi-visibility vest and prtective ftwear) must be prvided by the Member and wrn by any site visitrs befre they are taken ut nt a live cnstructin site. 3.6 Reserving a Hme Buyers must be given a Reservatin dcument that clearly establishes the terms f the Reservatin. The dcument must cntain: A clear statement that the Reservatin des nt cnstitute a cntract fr the purchase f the Hme Date f cmmencement f the reservatin perid Details f the Reservatin Fee t be paid n signing f the Reservatin, including: the terms under which the Reservatin Fee will be refundable r nn-refundable; and the reasnable Administratin Fees that the Builder r Develper may deduct frm the Reservatin Fee A Cling-ff Perid f at least 14 calendar days frm the date f signature f the Reservatin A descriptin f what is being ffered fr sale, including: a descriptin f the Hme; and the plt number f the Hme within the Cnstructin Prject; and the pstal address f the Hme, including the rad name, huse number and pst cde (if available at the time); and details f any garage(s) r parking space(s) dedicated t the sle use f the Buyer. Purchase price t be paid n Cmpletin, less any prepayments fr the Hme The perid during which the purchase price fr the Hme remains valid Details f the Reservatin Perid after which the Reservatin will end if there has been n Exchange f Cntracts Details f any Part-Exchange Scheme Details f any pre-cnditin t be satisfied by The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 18 f 35

19 Hme Owners Assciatin: estimatin t be prvided f the Annual Hme Owners Budget t be levied frm the Buyer(s) f the Cnstructin Prject, including estimated prprtinate share that the Buyer will be respnsible fr after Cmpletin Details f hw the Cntract Depsit will be prtected in the event f Builder r Develper inslvency Details f the prcess, including the latest date, by which the Buyer can request changes (i.e. paint clur, design details, finishes) t the Specificatin Once the Reservatin is signed by bth the Buyer and the Member (by hand, by Adbe E-Signature, DcuSign, r by ther readily accessible and easy-t-use n-line signature tl), the Member will nt sell r try t sell the Hme t anther Buyer befre the expiry f the Reservatin Perid, r befre the date when the Buyer cancels the Reservatin, whichever ccurs first. The Buyer has the right t cancel the Reservatin at any time during the Reservatin Perid. The Reservatin Fee must be refunded in full if the Buyer wishes t cancel the Reservatin fr any reasn during the cling-ff perid ffset ut in the Reservatin. The Buyer must be tld in advance f any Administratin Fees that will be deducted frm the Reservatin Fee if the Buyer cancels a Reservatin after the expiry f the cling-ff perid. The Reservatin Perid may be extended by agreement between the Member and the Buyer. The Member shuld cnfirm any extensin f the Reservatin Perid in writing, such cnfirmatin f the extensin t be signed by bth the Buyer and the Member. The Member des nt have the right t cancel a Reservatin. Hwever, if the Reservatin Perid is nt extended and there has been n Exchange f Cntracts during the Reservatin Perid, the Reservatin will autmatically lapse. If the Reservatin is cancelled r lapses, the Member must return the Reservatin Fee t the Buyer within 7 calendar days f such cancellatin r lapse. The Member must als explain the terms under which the Reservatin Fee, Cntract Depsit and any Administratin Fees r similar which the Member may deduct are refundable and any applicable csts r penalties in the event that the Buyer des nt prceed with the purchase f the Hme. 3.7 Part Exchange Schemes When a Member ffers a Part Exchange Scheme t Buyers, the terms f such a scheme must be transparent, and must nt be used t apply pressure n the Buyer t sign a Reservatin r enter int a Cntract. The terms f the Part Exchange Scheme must be explained in plain English and include full details f: Hw the Buyer can qualify fr the scheme; The terms and cnditins that apply; The methd f assessment f the fair market valuatin f the Buyer's existing prperty independently btained assessment by tw r mre lcal estate agents; Which valuatin is acceptable t the Builder r Develper and the reasn(s) why; Any deductins that will be made frm the fair market valuatin; Any deductins frm the valuatin; The date by which the Buyer must accept the ffer; The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 19 f 35

20 The cnsequences f nt accepting the ffer by the stated date; and The anticipated date by which the part exchange and purchase f the Hme will be cmpleted. The Member will prvide all prspective Buyers, particularly Vulnerable Custmers, with adequate time t cnsider and absrb infrmatin prvided abut the Part Exchange Scheme ffer 4 Exchange f Cntracts Stage - Entering int a Cntract fr a Hme 4.1 The Cntract f Sale The Cde requires that the Cntract terms and cnditins must: Describe the Prperty: adequately describe the Hme and any ther prperty being sld Be clear, fair and written in plain English Cmply with the terms f the U.K. Cnsumer Rights Act 2015 Set ut the prcess and timing fr advising the Buyer f the date f Cmpletin Define the length f time frm service f ntice t Cmpletin The circumstances in which the Buyer may terminate the Cntract f Sale, see Sectin 4.3 The prcedure t be fllwed in the event that cnstructin prgramme is behind schedule and the Hme will nt be ready fr handver t the Buyer by the date advised by the Builder r Develper. Detail the methd f prtectin is ffered t cver Buyer s Depsit, Reservatin fee, and ther advance payments. The Builder r Develper must state whether it is prviding Inslvency cver Indicate in writing if any spken statements are being relying n and the Member shuld then cnfirm these spken statements in writing, r reslve any prblems as apprpriate, befre Cntract Exchange. 4.2 The Timetable fr Cnstructin and Cmpletin The Cde requires the Member t: 1. Prvide the Buyer with reliable and realistic infrmatin at all times abut when cnstructin f the Hme is likely t be finished; the target date fr Legal Cmpletin; and the anticipated date fr handver f the Hme. 2. Establish a clear prtcl fr assessing latest schedule updates and cmmunicating this infrmatin t the Buyer. 3. Increase the frequency f cmmunicatin with the Buyer as practical cmpletin f the wrks appraches. 4. Assesses if any factr r series f factrs is likely t result in the cmpletin and handver being delayed beynd the dates set ut in the Reservatin and Cntract f Sale 5. Prmptly cmmunicate verbally and in writing the likelihd f a delay t the Buyer. 6. Reprt t the Buyer n the assessed reasns fr the delay and latest prjectins f a new target cmpletin and handver dates. The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 20 f 35

21 Reasns fr delay are likely t include: frce majeure; delays fr inclement weather; lack f cmmissining f essential services r equipment; waiting fr Building Cntrl Final Inspectin; cmpletin f access infrastructure; awaiting reslutin f Health & Safety cncerns with respect t the wider Cnstructin Prject in which the Hme is lcated. This infrmatin shuld be regularly updated by the Member, wh must ensure that all infrmatin prvided t Buyers n timings is accurate at the time it is prvided. 4.3 Terminatin Rights Buyers must be tld abut their right t terminate the Reservatin r the Cntract f Sale. Examples f circumstances when a right t terminate exists wuld include: An alteratin t the Hme that directly r materially affects the value Excessive r unreasnable misrepresentatin f features r amenities Excessive r unreasnable delay in cnstructin f the Hme and/r in serving the ntice t cmplete. 4.4 Alteratins and Changes t the Hme after Cntract The Member must frmally cnsult the Buyer and get their written agreement if it is prpsed t change the design, cnstructin r any materials t be used in the Hme that will materially alter its size, appearance r value f the Hme frm what was shwn t the Buyer when the Buyer was entering int the Reservatin and/r the Cntract. In such circumstances, the Buyer must be given the right t terminate the Cntract withut any penalty fr the Buyer, and have the Cntract Depsit returned withut deductin. The right t terminate must be exercised within 56 days f the Buyer receiving written details f the prpsed change frm the Member. Minr changes prpsed by the Member that d nt materially alter the appearance, r affect the value f the Hme shuld be cmmunicated t the Buyer in writing, with the advice that they may wish t cnsult prfessinal advisrs as t the effect f thse changes under the Cntract. Hwever, the Buyer s agreement is nt required by the Member in respect f such changes. Changes requested by the Buyer and that the Buyer agrees t pay fr that are nt included in the Reservatin r Cntract must be agreed in writing by the Buyer and the Member. Shuld the requested changes affect the date by which the Hme is expected t be finished and/r the date fr handver f the Hme, the Member must advise the Buyer f the revised dates befre the parties agree the requested changes Imprtant nte n extra wrk and extra items If the Member agrees t d extra wrk r t incrprate extra items that the Buyer will pay fr, and these are nt specifically included in the Reservatin r Cntract, they shuld be listed in a priced Schedule f Variatins and the parties shuld bth sign a written rder incrprating the Schedule f Variatins. If the inclusin f these extra items is likely t result in a delay in cmpleting the cnstructin f the Hme beynd the date riginally stated in the Cntract, this shuld be agreed and recrded by the legal advisers acting fr the parties. The Cde des nt cver agreements fr extra wrk r agreements between the Buyer and cntractr ther than the Member. The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 21 f 35

22 4.5 Prtecting Buyers' Depsits and Pre-Payments The Cde requires that the Member must clearly explain t the Buyer hw their Cntract Depsit is t be prtected and similarly hw any ther pre-payments (such as Reservatin fees) are prtected, befre the Buyer signs a Reservatin. The prtectin ffered shuld be ne f the fllwing ptins: 1. The Cntract Depsit is insured under a CRL Plicy r anther plicy f insurance prviding depsit prtectin cver; r 2. The Cntract Depsit, Reservatin Fee and any ther pre-payments will be held in a Statutry Trust accunt, which cannt be accessed by the Builder r Develper until Cmpletin. In either situatin, the Member must ensure the Buyer understands what will happen in the event that the Member becmes inslvent and hw their Cntract Depsit, Reservatin Fee and any ther pre-payment will be refunded. If the Member cntracts with an Estate Agent t sell the prperty the Agent will be required t fllw the prvisins f the Estate agents Act 1979 and assciated regulatins that require depsits t be held in a separate client accunt. 4.6 Infrmatin n Cmpletin The Cde requires that Buyers be tld whether a Structural Defects Insurance Certificate has been issued fr the Hme tgether with its date f issue, r the anticipated date f issue. At Cmpletin, Buyers shuld be prvided with the fllwing: A Structural Defects Insurance Certificate r an explanatin as t why it is nt available and the date by which it will be available An Insurance Certificate in respect f a CRL Plicy will nly be issued after the final inspectin has been undertaken by an Apprved Inspectr and the Hme is declared t be practically cmplete A cpy f the CRL Plicy r the Structural Defects Insurance Plicy which cvers the Hme The CRL Hmewners Guide A checklist f matters cvered by the Cde The Builder s r Develper s Cmplaints Prcedure. Infrmatin abut the CRL Dispute Mediatin Service (DMS) which can reslve mst disputes between the Member and the Buyer, which fall utside the scpe f the Structural Defects Insurance Plicy prvisins Infrmatin n hw t submit cmplaints cvered by the Cde t the DMS and t escalate a Dispute t the Alternative Dispute Reslutin Scheme Infrmatin abut the CRL Cde s Alternative Dispute Reslutin Scheme (ADR) Clear infrmatin relating t Health & Safety aspects f mving int a new prperty Where the Hme is lcated within an nging Cnstructin Prject site, specific instructins and advice must be given t the Buyer with respect t Health & Safety when accessing and mving arund the Cnstructin Prject site The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 22 f 35

23 5 Pst Handver Stage In Occupatin f a New Hme 5.1 Handver and Occupatin f a New Hme When the Hme is ready fr handver t the Buyer, the Member shuld ensure that a thrugh and detailed handver is facilitated fr the Buyer, identifying any utstanding wrk within the Hme r t ther areas f the develpment serving the Hme. The Member must prvide the Buyer f the Hme with cmprehensive and easily accessible infrmatin abut the Hme including: The prcedure t be fllwed t address snagging items A practical demnstratin f hw all appliances and hw ther equipment in the Hme perates. It is recmmended that a cmplete resurce f peratinal dcumentatin fr the appliances and ther equipment in the Hme is handed ver t the Buyer A cmplete file cntaining guarantee and warranty dcuments fr all items cntained within the Hme. Full details f the after sales service ffered by the Member as described in Sectin 5.2 belw A Health & Safety File fr the Hme in cmpliance with the Cnstructin (Design and Management) Regulatins 2015 (as amended and/r superseded) r any equivalent legislatin in the territry in which the Hme is lcated. This must include clear infrmatin relating t Health & Safety aspects f mving int a new prperty, including infrmatin abut specific residual risks which the Buyer needs t knw abut and any actin they will need t take after mving in. Sme examples f specific situatins which shuld be cnsidered include (this list is nt exhaustive): Arrangements fr access t phtvltaic panels if they require maintenance Designed lading capabilities f rfs / flrs, in case Buyers want t retrfit phtvltaic r ther equipment. Details f any remediated cntaminatin in garden areas and/r details f grund cnditins in case Buyers wish t retrfit a cnservatry r extend their prperty. 5.2 Prmting Excellence in After Sales Supprt The Cde requires that the Member must prvide the Buyer with cmprehensive and accessible after-sales service infrmatin t include: Cnfirmatin f the duratin f the supprt service and the end date f the supprt service Cntact names, telephne numbers and addresses f the Member s After Sales Supprt Team Cntact details f all relevant authrities, bdies and persns that may be needed by the Buyer e.g. Lcal Building Cntrl Officers, Public Utilities, etc. Instructins abut what t d in the event f an emergency Infrmatin abut hw t make a cmplaint under the Cde Guidance abut hw t make a claim under the CRL Plicy that cvers the Hme. Well-trained and knwledgeable staff must prvide the after-sales service. CRL prvides an n-ging schedule f CPD training mdules by Webinar and in-persn many f which will be helpful fr after-sales supprt staff In prviding telephne numbers fr Buyers, the Member must nly use natinal r lcal rate telephne numbers. The Cnsumer Cde fr New-Hme Ownership: First Editin, 1 st Octber 2017 Page 23 f 35