The buyer should also be provided with copies of
compulsory licences for building and living purposes,
Land Registry details of the property,purchase price
including estate agent commission and VAT,form of payment,completion date,
copies of the terms and
conditions of the standard contract and the document
proving that any money paid in advance during the
construction period are guaranteed.
5.9 Advance payment guarantees
The law makes the seller of a new property liable to have
an insurance or a bank policy to guarantee the buyer that
all the payments made,plus interest,will be recovered
in case the building construction does not commence or
will not be completed on the agreed dates.
It is therefore mandatory for the buyer,or his solicitor,to
make sure that the seller has in place the insurance policy
to comply with the law.As the policy may take a few weeks
to produce,it is also relevant to take care that the payments
are made to a special bank account or ask the seller to
provide a copy of the payment into that bank account.
The above policy does not just guarantee that the money
paid will be refunded in the unlikely circumstances
named,but it does mean that the insurance company or
the building society has checked the value and approved
the viability of the building project,giving you additional
security.
If this certificate is not in place,you are not liable to complete.
5.10 Completion
Completion should take place at the Notary Public of
the buyer ´s choice.At this stage,the developer requests
payment of the balance of the purchase price.It is
always advisable to do a pre-completion inspection of
the property and prepare a “snagging list ”of the work still
required.You should obtain the developer ´s commitment
in writing for the work to be carried out within a reasonable
period of time.
It is not sufficient for the developer to say the property
is complete.The architect dealing with the project needs
to certify that the building construction is finished.The
developer should then submit an application to the local
authority to carry out an inspection in order to con firm
that the property is habitable,in order to obtain the relevant certificate. If this certificate is not in place, then you are not liable to complete. You should consult your solicitor on this matter.
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