The New Construction Home Contract is essential for transactions involving newly built residential properties in England and Wales. It provides a comprehensive framework for both builders and purchasers, detailing construction specifications, quality standards, timelines, and payment schedules. This contract type is particularly important as it incorporates consumer protection measures, building regulations compliance, and warranty provisions specific to new builds. It's designed to protect both parties' interests while ensuring clarity on obligations and responsibilities throughout the construction process, from ground-breaking to final completion and handover.
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1. 1. Parties: Identifies and defines the builder/developer and purchaser
2. 2. Background: Outlines the context of the construction project and basic premises
3. 3. Definitions: Defines key terms used throughout the contract
4. 4. Property Details: Specific details of the property being constructed including plot number, address, and specifications
5. 5. Purchase Price and Payment Terms: Details of the purchase price, deposit, and payment schedule
6. 6. Construction Obligations: Builder's obligations regarding construction standards and timeline
7. 7. Completion: Terms and process for completion of the construction and sale
8. 8. Warranties and Guarantees: Details of structural warranties and other guarantees
9. 9. Defects and Remediation: Process for identifying and remedying defects during the warranty period
10. 10. Insurance and Risk: Requirements for insurance and allocation of risk during construction
1. Variations: Terms for handling changes to specifications or buyer requests - include when allowing customization options
2. Part Exchange: Terms for part-exchange arrangements - include when offering part-exchange options
3. Help to Buy Provisions: Special terms for Help to Buy scheme purchases - include when the purchase involves government schemes
4. Shared Ownership: Terms specific to shared ownership arrangements - include when the property is being sold under shared ownership
5. Environmental Considerations: Special provisions relating to environmental requirements or certifications - include when specific environmental standards must be met
1. Schedule 1: Property Specification: Detailed specifications of the property including floor plans, materials, and finishes
2. Schedule 2: Planning Permissions: Copies of relevant planning permissions and building regulations approval
3. Schedule 3: Warranty Documentation: Details of building warranty coverage and terms
4. Schedule 4: Payment Schedule: Detailed breakdown of payment stages and amounts
5. Appendix A: Site Plan: Detailed plan showing the property location within the development
6. Appendix B: Fixtures and Fittings: Detailed list of included fixtures, fittings, and appliances
7. Appendix C: Construction Timeline: Expected construction milestones and completion dates
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