Adoption of estate roads

The buyer’s claim

The buyer claimed the builder provided inaccurate pre-purchase information regarding adoption of the estate roads by the local authority.

The buyer requested the builder be directed to carry out its contractual responsibilities for the road adoption or pay £15,000 as compensation for the reduced value of the home.

The builder’s defence

The builder denied misrepresenting the matter and stated there was a small issue with the kerb that required a disproportionate level of work and disruption to make the adoption feasible. The builder made no offer of settlement.

The adjudicator’s findings

The adjudicator noted that the builder could not be expected to give an indefinite commitment to provide accurate information on matters that do not apply directly to the home.  

However the adjudicator found the builder had not given the complaint due consideration, had not provided its reasons as to why the complaint was being rejected and was striking in its lack of recognition of the issue. 

The adjudicator therefore found the builder had breached the Code.

Learning points

For buyers:

• When raising a dispute with the Code’s Independent Dispute Resolution Scheme, it is important to cover both the original source of your complaint – in this case whether the builder had carried out its responsibilities correctly – and the service you receive in relation to that complaint. Adjudicators sometimes find that the original issue may not be a breach of the Code or fall within the Code’s scope, but that a builder’s poor handling of the issue can constitute a breach in itself.
• Any claims for financial redress need to be substantiated. An adjudicator can award a maximum of £2,000 for upset and inconvenience under the Fifth Edition of the Code. Outside of this, buyers must be able to support any financial claims with evidence such as independent quotes. Dispute resolution schemes can only aim to return complainants to the situation they might have been in had the issue not occurred – this is not the same as compensation.

For builders:

• How you treat your buyers is crucial. Even if a buyer raises a complaint which you feel is unfounded, you must give their concerns due consideration in line with your complaints policy. If you do not agree with the complaint, you must explain what you have done to investigate it and why you have reached that conclusion. Dismissing or failing to fully consider a complaint increases the likelihood of you being found in breach of the Code, irrespective of the original complaint.
• The Code sets clear requirements for pre-purchase information which are set out in the Consumer Code with Builder Guidance. It is just as important to be clear about information you are unable to provide with certainty, and why. It’s not unusual for some aspects of a development to still be unclear at the point of a sale – but it is vital to be transparent with your buyers about what information is subject to change later in the process and how that might affect them.
• For more guidance on pre-purchase information and other key areas of the Code, read our Right First Time factsheets.