Q&As

Where residential properties built for a seller and based on the seller's design are sold, does the purchaser have any direct cause of action against the developer for any post-sale problems with the property?

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Published on LexisPSL on 30/03/2021

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • Where residential properties built for a seller and based on the seller's design are sold, does the purchaser have any direct cause of action against the developer for any post-sale problems with the property?

Under the Defective Premises Act 1972 (DPA 1972), a person who takes on work for or in connection with the provision of a dwelling owes a duty to ensure that the work is done in a workmanlike or, as the case may be, professional manner, with proper materials so that the dwelling is fit for human habitation.

A property developer can be liable where they have arranged for another party to undertake the work: DPA 1972, s 1(4).

For further information, see:

  1. Practice Note: Defective Premises Act—provision of dwellings

  2. Commentary: Duty to build dwellings fit for habitation: Halsbury's Laws of England [275]

The buyer should also review their contract with the seller to see whether it contains any obligations concerning the standard of construction. If so, and if they have been breached, the usual contractual remedies will apply.

The buyer may also have a direct claim against the builder if it has received a warranty'>collateral warranty or third party rights nomination in its favour. A collateral warranty is a contract that is 'collateral' to (ie sits alongside) another, primar

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