The advisor must certify in the certificate that he maintains a professional liability insurance at a certain level, but this obviously does not limit his liability to that amount. The liability of the advisor after the certificate is unlimited. It is also possible that professional liability insurers may decide that the declarations contained in the certificate are guarantees of utility that the insurance may not cover. They may be tempted by the sales incentives that accompany new housing, such as the payment of legal fees, the delivery of white goods and furnishings. From the beginning of September, lenders of new, refurbished or renovated builders or developers will require a new « disclosure of incentives » form. This is reinforced in the CML manual, which sets out specific requirements for us as intermediaries acting on behalf of lenders in real estate transactions. An NHBC certificate provides insurance coverage for a number of designated property-related defects for a period of 10 years. This is the overall industry standard for warranty systems. Although the NHBC Buildmark system is the most common, there are other related insurance systems, such as the Zurich Mutual Newbuild Scheme. If the.
B construction work was supervised by an architect, an equivalent certificate can be invoked against this person in case of negligent construction defects. As a general rule, a developer will not accept the national internal transmission protocol as such if it is involved in new constructions, but will provide at the beginning of the transaction a set of information very similar to the protocol package, but in a different form. These are usually copies of the corresponding building permit, the building permit, the highway agreement and the water industry and obligations agreement. These certificates are dangerous. In general, new homes will benefit from insurance/guarantee systems such as the NHBC. This provides a 10-year warranty and insurance coverage to protect the owner in the event of problems. Lenders on these lands generally require that they be able to benefit from such a system. This is not always available: the owner should not be registered for one, because it is too expensive or if the residential part is only next to a larger business scheme. As a general rule, guarantees are preferable, as no proof of fault on the part of the guarantor is necessary, as is the case with a CML certificate.
But some small construction companies may not be able to afford it – in this case, a CML certificate is usually sufficient. Intermediation of a new property is a more complex transaction than buying an existing home or building, and certain things relevant to the purchase of an existing property must be taken into account. Because contractors depend on a variety of factors, such as the supply of materials and weather conditions, it is never possible to indicate a fixed completion date. When the property is completed, the owner informs us in writing that it is ready and that it must be completed within the time specified in the contract, usually 10 working days. CML certificates generally cover the property only for a shorter period of about 6 years and there is evidence that the consultant must be negligent in successfully claiming damages. The main features of a new real estate transaction, which distinguish it from a regular sale/purchase transaction, are: The plaintiff has an action against the owner, since the person who is the first person responsible for the defect, but the owner may be insolvent or has insufficient assets when the defects arise, it will be easier for the applicant to sue the advisor who probably has professional liability insurance.