Resolving defects in communal areas

The buyer’s claim

The buyer claimed the builder had not resolved defects in the communal areas of the development and its after-sales service had been inaccessible.

The buyer requested the builder rectify all the communal defects at no cost to leaseholders and pay £500 compensation for distress and inconvenience.

The builder’s defence

The builder stated that several of the reported defects were either design or specification matters rather than actual defects or had been caused by third parties after handover and were the responsibility of the management company.

It stated it had addressed all valid issues and would continue to work with the management company.  No offer of settlement was made.

The adjudicator’s findings

The adjudicator noted the buyer had initially raised the issues with the management company but following a lack of response had deferred to the builder who declined to take responsibility and referred them back to the management company.

The adjudicator found that the builder, being responsible for providing an accessible after-sales service and resolving complaints, should have taken more proactive action to secure engagement from the management company

The adjudicator also found there was no evidence to prove the builder properly investigated the complaint to identify which matters were valid defects or that it contacted the management company to facilitate a response.

Learning points

For buyers:

• Your builder is responsible for resolving problems with your property for the first two years after legal completion. This includes defects in communal areas such as stairwells and entrances to flats as well as shared green spaces.
• Typically, once a management company has taken responsibility for maintaining communal areas, they will be your first port of call. Your builder should provide all the relevant information about who to contact and how.
• If you are not satisfied with the response from the management company, your builder retains overall responsibility for snags related to the original construction of the dwellings and communal spaces for two years after legal completion and should resolve matters on your behalf.
• If you cannot resolve matters with your builder, you can raise a complaint via the Independent dispute Resolution Scheme.

For builders:

• Your after sales responsibilities set out in the Code continue even if a management company is appointed to oversee communal areas.
• It is your responsibility to ensure the appointed management company meets the requirements for responses to snagging and complaints set out in the Code.
• Remember, if the management company is not resolving issues, buyers can come to you to expect after sales support, including raising disputes via the IDRS.