How the Consumer Code Protects Home Buyers
Buying a house can be one of the most stressful experiences you will have to face. But what are your rights and who is protecting you?
Since 1st April 2010, the Consumer Code for Home Builders has been in place to protect the interests of home buyers during the purchase of newly built homes.
Before this, if a Home Buyer felt they had a claim against their builder, they would have had to take it to court if it was not covered in their warranty, which could have incurred large costs. Now under the Consumer Code, the builder’s responsibilities are made very clear and an independent, low-cost dispute resolution scheme has been set up to determine the builder’s responsibilities without having to go through legal action.
What is the Code?
- It is a set of requirements for dealing with customers
- It introduces a new independent dispute resolution service
- It monitors, measures and reports on customer satisfaction and industry compliance
- It is financed by the industry through the Warranty Bodies
What’s the purpose of the Code?
To ensure that Home Buyers:
- are treated fairly;
- know what service levels to expect;
- receive reliable information upon which to make their decisions; and
- know how to access speedy, low-cost dispute resolution arrangements if they are dissatisfied.
Who is covered?
Anyone who buys or reserves a newly built home under the insurance protection of Premier Guarantee or by the other warranty providers as stated in the Consumer Code.
How are consumers protected?
Every stage of the home-buying process is covered by the Code: pre-purchase, pre-contract, exchange of contract and during occupation. There are clearly defined requirements that builders must adhere to in order to comply with the Code and therefore ensure the home buyer is fairly treated throughout the buying process. Further information about what is covered by the Code can be found at the Consumer Code website.