Pre-purchase information, completion date and snagging

The buyer’s claim

The buyer claimed the builder had provided misleading advertising and marketing material regarding the quality of the home, failed to provide a timeline for the completion of construction, and failed to deal with the buyer’s complaints regarding snags and defects.

The buyer requested:

• a written apology
• £1,920 reimbursement for an independent survey
• approximately £2,000 for repainting woodwork
• £865 for additional heating costs
• all remaining snags to be addressed
• £500 for inconvenience.

The builder’s defence

The builder denied that the marketing and promotional material was misleading and claimed that an adequate timeline for completion of construction had been provided. The builder also said they had acted to resolve most of the issues/snags.

The builder made no offer of settlement.

The adjudicator’s findings

In relation to misleading marketing materials, the adjudicator found the information provided was not in itself misleading and therefore did not breach the Code requirements as the fault lay in the subsequent actions of the builder in constructing the home to the quality aspired.

The adjudicator did find that the builder had supplied inaccurate and unclear information in relation to completion which breached Section 3.2 of the Code.

However, the adjudicator found no evidence that the builder failed to give the buyer the required information to make the after-sale service accessible. The adjudicator noted the importance of handling and resolving complaints properly albeit the outcome of the process need not necessarily satisfy the buyer to comply with the Code as there will be circumstances where the parties disagree about what the outcome of a complaint should be.

Although the builder had rectified most of the snags reported, the adjudicator determined that section 5.1 of the Code had been breached as the builder had taken an unreasonable amount of time to do so with some still outstanding after more than 18 months.

Learning points

For buyers:

• Make sure your builder is aware of your expectations for the property and any specific requirements you may have, and they should point out any aspects that may be unrealistic or which may have a material effect on your decision making.
• Keep records of all dealings with your builder, put any requests in writing and obtain written confirmation of agreements and verbal conversations so that you can refer back in the event of a problem.
• The Code sets out requirements for effective complaint handling and your builder is required to respond to complaints promptly, provide a timescale for any remedial works required and complete these within a reasonable timeframe.
• When raising a complaint, obtain evidence in the form of quotes and estimates for remedial works and keep receipts for works undertaken. Read our blog for tips on how to raise an effective complaint.

For builders:

• Ensure completion information is as accurate as possible and provide this in writing. Keep your buyer updated on progress and if there is a delay, let your buyer know as soon as possible, with realistic timescales.
• Good record keeping is important and it is a good idea to confirm conversations and requests in writing to help avoid problems and misunderstandings further on in the process.
• The Code requires you to respond to all enquiries in a timely manner and this includes acknowledging the issues, dealing with any repairs as quickly as possible and considering alternative solutions if there are problems or delays. Take a look at our Guide to effective complaint handling and our six top tips for creating a clear complaints process.
• Ensure all staff, including sales agents, undertake the Code’s online training and that this is refreshed annually. Read the Code requirements with builder guidance and register for the Code’s online training courses.
• Communication is key, and regardless of the issue, keep your buyer informed throughout. After all, providing great customer service can turn a negative situation into a positive experience for your buyer.

Adjudication Case HOME007183