Guidance on new building agreement published
The Law Society’s Conveyancing Committee has published a practice note and explanatory memorandum on a new Combined Building Agreement and Contract for Sale.
The committee points out that the combined document is intended for use in residential estates only and is not suitable for use for one-off units.
It adds that the agreement, which has been available to use from 1 January, should be used for all new homes (houses and apartments) in residential estates on and after 1 February.
The committee is urging solicitors to implement and adopt the agreement and contract “at the earliest opportunity”.
‘Anomalies’ addressed
The Law Society’s building agreement with the Construction Industry Federation (CIF) was last updated in 2001, since when there have been many significant developments in the law.
Before the new agreement, the recommended Law Society practice for the sale of a new house or apartment in a development was that both the standard Law Society Conditions of Sale 2023 (Revised) Edition and the 2001 building agreement be used.
The organisation said, however, that this practice threw up “certain inconsistencies and anomalies” that the new document aims to address.
Definitions
Among the notable changes in the combined agreement are definitions of terms such as ‘force majeure’, ‘insolvent’, and ‘utility delay’.
A change in the section on the ‘date of practical completion’ reflects changes brought about by the Building Control Regulations, which prohibit the opening, use, or occupation of a dwelling until the Certificate of Compliance on Completion has been validated and uploaded onto the Building Control Management System.
There are also changes to several conditions in the agreement.