The NAEA is urging estate agents to adopt the requirements of the Consumer Code for Home Builders when selling new homes on behalf of builders and developers.
The code has 19 mandatory requirements and principles that home builders must meet in marketing, selling and after-sales service of new homes.
The code is not enforced by the OFT but is backed by all the new homes warranty bodies, including the NHBC, who fund the scheme. It came into effect on April 1, 2010, and an NAEA spokesman says it gives certain rights to all buyers of new homes, including off-plan units, since then.
Noel Hunter, chairman of the Consumer Code for Home Builders Management Board, told the NAE's Lane, New Homes & Rural Estate Agency Forum, 'Building the Future', why estate agents should be aware of, and comply with the requirements of the code.
He said: “The code secures the relationship between the builder and the buyer at the point of reserving the home and applies right through to after-sales service.
“First contact between them could be made through an estate agent, and it is vital that agents understand the obligations of the code and, by promoting it widely, raise standards of customer service.”
The code means that builders who adhere to it provide clear, comprehensive information about the home to the buyer, including a realistic timescale for its completion, and details as to after-sales care.
In the event of disputes, the home owner can access a low-cost independent dispute resolution service that will determine the builders’ responsibilities.
Peter Bolton King, chief executive of the NAEA, said: “It is important for estate agents to become familiar with the code and to pass on information about the scheme and the protection it offers to potential homebuyers.
“Even though satisfaction levels are high among owners of new homes, the property sector can do more to raise standards of customer care and protection.
“A combined effort between estate agents and builders will ensure that the code is promoted in the right way, and that everyone is aware of their rights.”
www.consumercodeforhomebuilders.com
Comments
@PeeBee
No, we don't do we! ;>)
I take on board what you say. Maybe I got carried away with my point which was again to stress how, in my view, how out of touch the NFOPP seems to be with their main duty to the majority of their members.
i.e..........the NFoPP is not a consumer organization, it is a ‘trade organization’ which should CONCENTRATE primarily on the rights and interests of its members and fight the unnecessary legislation being constantly suggested by the ill informed consumer associations and parliamentarians..........
OOPS! In my haste I left in an error. There is no 'sign up' required to the Code - builders are bound by it, by virtue of their registration with their Warranty provider.
Ray: Now you and me don't disagree often - so let's see how this one pans out, shall we? ;o)
The point is that ALL builders/developers who offer Warranties via NHBC/LABC etc MUST sign up to, and comply with, the Code.
You are well aware that most if not all Agents do work at some point for builders. Many large/medium Independents and most Corporates have dedicated New Homes disciplines. Because of this, then these Agents need to be fully conversant with said Code BEFORE carrying out any work for builders.
The story actually omits THE most important factor - that of Reservation Fees.
Perhaps someone who deals in L&NH could comment, but I would be most surprised if builders haven't written to their Agents advising them of the Code, and putting onus on THEM to ensure that the terms are enforced and accept appropriate liability. The penalties for failure to meet the Code are stiff - and builders certainly won't accept carrying the can for a third party not knowing what's what!
“…..Peter Bolton King, chief executive of the NAEA, said: “It is important for estate agents to become familiar with the code and to pass on information about the scheme and the protection it offers to potential homebuyers…….”
“Even though satisfaction levels are high among owners of new homes, the property sector can do more to raise standards of customer care and protection.
“A combined effort between estate agents and builders will ensure that the code is promoted in the right way, and that everyone is aware of their rights.”
Yet more ‘mush’ from the NFoPP. Suggesting yet more time and cost for EA’s!
The purpose of the Code is to ensure that Home Buyers:
are treated fairly;
know what service levels to expect;
are given reliable information upon which to take their decisions; and
know how to access speedy, low-cost dispute-resolution arrangements if they are dissatisfied.
This is for the BUILDERS to comply with not EA's.
Whilst EA’s quite rightly give serious consideration to the publics ‘rights’ the NFoPP is not a consumer organization, it is a ‘trade organization’ which should CONCENTRATE primarily on the rights and interests of its members and fight the unnecessary legislation being constantly suggested by the ill informed consumer associations and parliamentarians.
URGING?? It's the LAW, for heaven's sake - and has been for over a year!!
Next they'll be URGING Agents to follow the Estate Agents Act 1979...
Jeez - I give in. I REALLY give in!