66. Guarantees and warranties
In the context of real estate and property transactions, "guarantees" and "warranties" refer to assurances or promises made by the seller regarding the condition, quality, or performance of the property being sold.
These terms are often used interchangeably, but they have distinct meanings and implications:
Guarantees
- A guarantee is a formal assurance or promise made by the seller that certain conditions or qualities of the property will meet specific standards.
- Guarantees are legally binding commitments and can cover various aspects of the property, such as the structural integrity, the absence of defects, or compliance with certain regulations.
- If a guarantee is breached, the buyer may have legal recourse and may be entitled to remedies, such as repairs, replacements, or compensation.
Warranties
- A warranty is a specific type of guarantee that provides a written commitment from the seller regarding the condition of the property.
- Warranties often come in the form of a written document that outlines the seller's promises and may include information about the duration of the warranty, the scope of coverage, and any conditions or limitations.
- Warranties can cover various aspects, including the structural elements, systems (e.g., plumbing or electrical), and the overall habitability of the property.
It's important to note that the specific terms and conditions of guarantees and warranties can vary based on local laws, contractual agreements, and the nature of the property transaction. In some cases, sellers may provide warranties as part of the sale contract, offering additional assurances to the buyer. However, buyers are encouraged to conduct their due diligence, such as property inspections and inquiries, to ensure they have a comprehensive understanding of the property's condition.
In the UK, for instance, new homes often come with a 10-year warranty provided by organisations like the National House Building Council (NHBC) or other warranty providers. This warranty typically covers structural defects and provides protection for the buyer against certain risks. It's crucial for both buyers and sellers to be aware of the specific guarantees and warranties in place during a property transaction to avoid misunderstandings and ensure a transparent and fair process.
Identifying guarantees and warranties
To determine if the property benefits from the specified guarantees or warranties, review any relevant documentation or records related to the property's construction, maintenance, and improvements. Remember that while gathering copies of warranties is important, providing accurate and honest information about them in your property disclosure is equally crucial. If you have difficulty obtaining documentation, be sure to explain the situation to your conveyancer or solicitor.
To find documentation for your guarantees and warranties, follow can follow these steps:
| Search your records | Start by looking through your personal records, including property-related documents, folders, and paperwork. You might find original copies of warranties or guarantees that were provided to you at the time of purchase or installation. |
| Search your records | Start by looking through your personal records, including property-related documents, folders, and paperwork. You might find original copies of warranties or guarantees that were provided to you at the time of purchase or installation. |
| Contact your builder/contractor | If you received a New Home Warranty or warranties for specific components when you purchased the property, reach out to the builder or contractor who was responsible for the construction or installation. They should be able to provide you with copies of the relevant documents. |
| Review purchase agreements | If you bought the property from a developer or builder, review the purchase agreement and any related documents. Often, warranty information is included in these agreements. |
| Check homeowner's manual or pack | Some properties, especially newly constructed ones, come with homeowner's manuals or information packs that include warranty details for various components of the property. Look through these materials for relevant information. |
| Contact warranty providers | If you have a warranty from a specific provider, contact them directly. They can provide you with copies of the warranty and any related information. This applies to warranties like New Home Warranties, roofing warranties, and more. |
| Contact contractors/service providers | For warranties related to specific installations or renovations (e.g., windows, electrical work), reach out to the contractors or service providers who performed the work. They might have documentation regarding the warranties they offered. |
| Check with property management | If you live in a managed property or condominium, the property management company might have copies of warranties or guarantees related to communal areas or shared systems. |
| Review online accounts | If you have registered for online accounts with warranty providers, check their portals. Some providers offer online access to your warranty documentation. |
| Previous owners | If you are not the first owner of the property, try reaching out to the previous owners. They might have documentation related to warranties or guarantees. |
| Ask your conveyancer | If you have engaged a conveyancer or legal professional for the property transaction, they might have copies of warranties or can guide you on how to obtain them. |