Buying And Living in a Multi-Unit Development Property in Ireland
8. Snagging
Continued8.6 Does the developer have to attend to all items on the snag list?
The terms and conditions of your contract should set out the developer's commitments with regard to snagging your unit. In general, the developer is required to attend to any snagging problems which may emerge in your unit.
The developer should inform you when these defects have been remedied and you should arrange for a return visit to ensure that this is satisfactory.
Where disputes between the parties over the snag list cannot be resolved amicably there are provisions in the standard contract where the parties can request that the dispute be solved by independent arbitration.
8.7 Warranty schemes for major structural defects
A significant number of new properties built in Ireland are registered by the developer with a guarantee scheme such as HomeBond or Premier Guarantee.
These schemes cover structural defects in new houses.
Whether your unit is covered by HomeBond or Premier Guarantee should usually be indicated in marketing materials and Requisitions on Title.
8.7.1 Premier Guarantee
Premier Guarantee is a structural defects insurance policy for housing and apartment developments.
Protection is extended to all parties with a financial interest in the property and is assignable to future owners. Premier Guarantee automatically affords the following protection:- 10 years Structural Defects protection;
- 5 years cover for ingress of water, chimneys and flues;
- Up to 6 months alternative accommodation costs;
- Sums insured increased annually by 5% or the House Building Cost Index, whichever is the lesser, free of charge.
Further information on Premier Guarantee is available from: Coyle Hamilton Willis, Grand Mill Quay, Barrow Street, Dublin 4.
8.7.2 HomeBond
If you have purchased a HomeBond registered property then you have a warranty in relation to deposits, stage payments, builder's bankruptcy or liquidation and major structural defects.
As regards structural defects, these are defined as "any major defect in the foundations of a dwelling or the load bearing part of its floors, walls and roof or retaining walls necessary for its support which affects the structural stability of the dwelling".
In addition, HomeBond also covers major non-structural defects which might lead to smoke or water penetration of the completed home.
In the event of a problem arising within the first two years of the ten-year cover it is a condition of HomeBond that you must seek redress from the builder in the first instance.
After the first two years you may apply directly to HomeBond in the event of a claim. It is important that you are aware that HomeBond coverage is limited to major structural defects only. It excludes:
- Minor structural defects and other non-structural defects;
- Any defect consequent upon negligence other than that of the member (i.e. the builder) or a sub-contractor;
- Any defect for which compensation is provided by legislation or which is covered by insurance;
- Any defect arising in consequence of drawings, materials, design or specification provided by or on behalf of the purchaser;
- Any defect caused by or damage to anything not built into the dwelling pursuant to the contract for sale or building contract entered into by the builder and the purchaser;
- Hair cracks, shrinkage, expansion or dampness due to normal drying out of the dwelling or condensation;
- Wear and tear or gradual deterioration. Consequential loss whatsoever or howsoever arising.
- Any defect in central heating;
- Any defect consequent upon installation in or upon the dwelling house by the builder or otherwise of any lift or swimming pool.
Further information on HomeBond is available from: HomeBond, Construction House, Canal Road, Dublin 6