Buying a new property/NHBC Buildmark Cover (cont'd...1)

6.  Drains and Sewers
Similar problems can also apply with drains and sewers and again your property lawyer needs to check that there is a valid legal agreement in place for the Water Authority to assume responsibility for maintaining the sewers in the future, or that they have already accepted responsibility for them.

7.  Description of the Property
Your lawyer needs to ensure that the contract contains a detailed description of the new property in the form of an accurate verbal description and a professionally prepared plan.

8.  Easements
Checks need to be made that there are relevant easements.  These must include:

1. rights of way over all the estate roads until adopted;
2. rights to use the drains and sewers;
3. rights to use all pipes and cables for all services, e.g. gas, electricity, water, telephone etc;
4. rights of access to maintain all of these.

It is essential when buying a new property that your property lawyer checks:

1. that there is a term in the contract indicating the Builder is registered with NHBC and will continue to be so until completion;
2. that on exchange the builder will offer to enter into a 10 year guarantee;
3. that despite the above contractual terms the Builder Developer is actually registered with the NHBC.

9.  Reservations
The legal contract should also provide for rights for you to go on to adjoining property to maintain and repair any pipes, sewers, walls etc.

10.  Covenants
New covenants will be created in the legal documentation (e.g.  to use the property only for residential purposes) and some of a positive nature (e.g. maintenance of boundary fences).  Your property lawyer needs to check that these covenants are not too onerous and that they will not affect your enjoyment and proposed use of the property.

What is NHBC Buildmark Cover?

NHBC Buildmark Cover is a ten year insurance policy divided into four main parts:

1. Cover before completion
2. The first 2 years
3. Cover in years 3 to 10
4. Additional cover in years 3 to 10 where NHMC's subsidiary carried out the building control

NHBC cover before completion
If, due to insolvency or fraud, the builder does not start building or converting your home or fails to finish it, NHBC will reimburse the money you have paid the builder for the home that cannot be recovered from him.  If the property is not finished, NHBC can arrange for the property to be finished in accordance with its Standards.  There is a financial limit of £10,000 or 10% of the original purchase price (whichever is the greater) to this part of the cover.

The first 2 years after completion
For the first 2 years, Buildmark covers you against any physical damage to the home caused by a defect which results from the builder failing to meet NHBC Standards.  This part of the cover runs from the date of legal completion of the first sale of the home (date of entry in Scotland) or, if later, the date NHBC agrees the home substantially complies with NHBC's requirements.