Case Study

The buyer’s complaint

The buyer claimed the builder had substituted steps for a slope to the front door without their knowledge or consent, which they claimed was a “Major Change” and reduced the accessibility and value of the home. The buyer requested compensation of £6,500.

The builder’s defence

The builder denied the alteration was a major change and that it was introduced due to variations in the levels of the development from those expected and to comply with Building Regulations relating to accessibility.

The adjudicator’s findings

The adjudicator noted they could only decide on matters relevant to whether the Code had been breached and that wider issues, such as breach of contract or compliance with Building Regulations, could not be considered.

The adjudicator found that the change to the front access had no impact on the size or value of the Home and although appearance of the Home had changed, the Code envisages that changes can be made without consultation or consent unless the effect of these is both significant and substantial. The adjudicator did not consider the change substantial or significant and the builder was not required to obtain the buyer’s consent.

The adjudicator also considered the sales and advertising material were not misleading as the images of the home were correct at the time that the brochure and site layout plan were published and explained that changes could be made.

However, the adjudicator noted that the builder did need to inform the buyer about the change to the home and that this information would reasonably have been expected to be provided before exchange of contracts as it could affect a buyer’s decision to purchase. In addition, omission to inform a purchaser of a change deprives them of an opportunity to influence the builder by suggesting an alternative.

Decision

The claim succeeded and the builder was directed to pay the buyer £1,000 to enable them to build the slope asked for and £350 for inconvenience caused.

Learning points

For buyers:

  • In the early stages of development, minor alterations to original layouts and plans are relatively common as there are often many unknowns. Your builder may have to adapt their plans to meet building requirements or other issues. If there are features of your home that are particularly important to you, it is worth flagging these with your builder so they are aware of what may influence your buying decision.
  • Your builder is required to inform you about any changes they plan to make to your home. Minor changes don’t require your consent, but you should be kept informed.
  • If your builder makes a substantial change to your home (as defined in the Code) that you do not agree to, you may be able to cancel your contract – even after exchange – and request a full refund. If your builder makes a substantial change to your home (as defined in the Code) that you do not agree to, you may be able to cancel your contract – even after exchange – and request a full refund. However, we recommend you discuss this with your solicitor or licensed conveyancer first.

For builders:

  • Good, regular communication with your buyers is essential. In this case, the main problem was that the builder hadn’t informed the buyer of the change in access, which ultimately led to a breach of the Code. Even when you make minor changes to the layout or features of a home, you must keep your buyers up to date.
  • It’s important to remember that for most home buyers, this may be their first new build home. As consumers we are used to buying goods which look how we expect them to and have the features we want. Homes are more complex purchases and sometimes making changes is unavoidable, but for buyers, changing a ‘product’ after purchase may feel very alien. Take the time at reservation stage to properly explain that changes may be required and be clear about how you will share that information with your buyers should the need arise.

Adjudication case HOME008691

Tags

External appearance, Change after contract, pre-purchase information, Succeeded

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