LOCAL AUTHORITY HABITATION CERTIFICATE
The granting of the habitation certificate for your new home is imperative for all builders. It basically means it has passed an inspection from the local authorities building control dept and is now officially fit for habitation. The Site Managers are all heavily pressured into achieving this certificate at the earliest opportunity in order that the legal transaction can take place.
You will find that within the missive for your new home it will state that the full purchase price will have to be paid within X amount of days from the habitation certificate being granted. It is usually 7 days and in most circumstances this would seem reasonable, however this is the dubious/unfair part. The habitation certificate covers only the very basic functions and facilities of your home. It gives no regard to quality of workmanship or standards of finish.
Most aggrieved homebuyers like to think that they could hold back some sort of retention in this type of circumstance but beware, double check the wording of the builders missive. If you fail to conclude the legal transaction within X amount of days of the habitation certificate being granted your builder will reserve the right to charge you interest on the full sum outstanding on a daily basis until such time as you either complete the sale or they re-sell your home! You will also usually be forced to pay for all additional marketing fees should your home be put back on the market!
Please remember property transactions are not covered by the Sale Of Goods Act 1994.
The circumstance above is very common for completions due on the half year end (June) or year end (December). It is known in the trade as "Shoe Horning Clients In". Builders have to rush, in these periods in order to achieve the over ambitious results/profits their shareholders demand.
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