An interesting question was raised by a new homeowner selling his home, when he wrote to me this week and asked:
I have a quick question. Linden sent someone to fill up the missing concrete in the holes around the pipes in my bathroom floor earlier this year. I have been trying to sell this flat for a few months now.
On the 'Law Property Information Form', there is a question I am not sure how I should answer.
The question is in the section under Guarantees and warranties.
"Have any claims been made under any of these guarantees or warranties?
If 'Yes', please give details. "
I used NHBC's dispute service. This is not an NHBC claim, is it?
In my reply I said that, in my opinion, a new homeowner will need to have written to the NHBC and reported a defect. Using the NHBC Resolution Service to mediate for a disputed normal snagging item should not be considered a claim especially if there was no cost involved.
However, as far as the NHBC are concerned in this case, as there was a visit from an NHBC investigator, it is considered (by the NHBC) as a claim.
Strictly for a "claim" to exist, a new homeowner would need to have had the NHBC actually arrange for and take control of the remedial work being carried out by one of it’s contractors. Snagging works carried out by the original housebuilder during the first two years, or required by the NHBC after a resolution inspection, should not be considered a "claim" under the new home warranty.
Anyone who answers "Yes" to this question could well open a can of worms, complicating and delaying the sale. It could mean the home is undervalued by the potential buyer’s lender or their mortgage offer being insufficient. It will probably mean the buyer arranges a full structural survey, which could lead to either the sale falling through or a re negotiation on the price.
In this case, Thames Valley Housing Association told the homeowner:
"If there was any cost involved with resolution service, then you should say Yes there was a claim. As there was no cost and the resolution service was used to get Linden to remedy the defective items, it is not considered an NHBC claim."For complete piece of mind, the owner selling the home could ask the NHBC is any communication is considered a claim on the Buildmark warranty. If the NHBC say "No" (get them to confirm in writing) they can safely put "No" in the box.
