A large number of contracts to build new homes incorporate the provisions of the National House Building Council ('NHBC') scheme, a typical system of insurance which gives the purchaser of a new house an alternative remedy against the NHBC in case of defects, and places certain obligations upon the house builder1.
The scheme operates by compelling all builders registered under it to offer to the house buyer standard contract documents which include a limited insurance policy, and certain undertakings to remedy defects. The scheme provides for two periods: (1) an initial period of two years after completion, during which the
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