13/08/2019
Snagging Provisions, Warranties & Retentions
Many developers will not allow a buyer to view their property until construction has been completed. In some cases, it’s possible that the buyer will feel the quality of work falls short of expectations and, as a result, it’s important for your conveyancer to negotiate a snagging provision into your purchase contract with the developer. This is the process whereby any errors or defects (ranging from cosmetic to more serious structural problems) are itemised and passed to the developer for repair prior to completion or shortly after you move in.
In the Netherlands, homebuyers can withhold 5% of the home value and deposit it with a notary for three months.
An important point to be aware of is that your developer will be holding retention monies on their sub-contractors for 6-12 months to ensure that the sub-contractor properly completes the activities required of them under their contract with the developer.
The best time to carry out a snagging survey is before the final payment is made on the property as any issues that arise after you have moved in could be disregarded by a developer as post habitational wear and tear. However, it’s worth remembering that your developer is responsible for all remedial work on defects which occur within the first two years after purchase.
After that point, your warranty will (hopefully) cover specified structural problems. Most new builds come with a ten-year NHBC (or similar) warranty which provides a form of insurance against structural defects. Be aware, as the warranty provider can take a very long time to resolve outstanding issues. This makes the need for an independent snagging survey either before completion or as soon as you move in all the more important.
Unfortunately, after you have paid your money and moved into your new home, the developer's attention will now be focused on the next project or ensuring that the next unit or phase in the development reaches the point where it can be sold. Many purchasers find that it is an uphill struggle to force the developer to deal with outstanding work. They suffer the stress of constantly chasing the developer for action and spending days at home waiting to keep appointments with trades persons who may arrive unprepared, late or not at all.
Our New Build Snagging Survey prices start from only £245.
