completion certificate New built (missive)

puneetdwd

Hi,
I am buying a new built end terrace house in Edinburgh (first time buyer). I have booked it 2 months ago and it is under construction and hopefully will be available by next month (end of Aug 2016). As in scotland you have to go thru solicitor.

The builder want to delete a clause in the missives which is about completion certificate issued by Council. They don't want to commit on any timeline when the completion certificate will be issued. The Bank (Mortgage provider) is ok with the temporary Habitation certificate (issued by Building Standards inspection ) which usually expires in 2 years time. My solicitor said this is normal the only risk is that I will not be able to sell my property until the completion certificate is issued.

Once I move and mortgage is paid and the council rejects to issue completion certificate due to some building error. What happens then?
I have already paid booking amount to builder and 10% of deposit for finishing touches (kitchen, flooring etc.) to the mortgage lender I have paid 400 for valuation and £1000 to reduce my interest percentage.
The builder has very bad reputation down south in England and all over internet however I personally know few people bought in Scotland and its not that bad they are Persimmon homes.

Please guide me, I am dilemma

bod1467

Agree to the deletion of the clause, as long as the builder agrees to the addition of a clause along the lines of ...

x) The seller shall be liable for any and all costs attributable to the non-granting of a Completion Certificate should this situation occur and any Temporary Habitation Certificate expires.

Speak with your solicitor ... that's what you're employing them for.

davidmcn

puneetdwd wrote: »

Once I move and mortgage is paid and the council rejects to issue completion certificate due to some building error. What happens then?

Then you'll probably have a claim against the builder under some other provision of the contract (and/or a claim under the NHBC guarantee).

Your solicitor is correct about what the normal practice is.

puneetdwd

Thanks you very much bod1467 and davidmcn for your quick response. I am 1st time buyer and bit nervous as it my whole life savings.

I am listing here the specific condition which the Builder want to delete is :-
2 . With reference to condition 13, in the event that the said certificate of acceptance of Completion Certificate is not delivered at the settlement, the seller shall keep the temporary Habitation certificate in full force until delivery is effected.


Condition 13 : If the written Certificate of Fitness for Occupation/Completion Certificate / Acceptance of Completion certificate whichever is applicable is not available on the date of entry you undertake to deliver a copy of the certificate / Acceptance of Completion certificate as soon as received from Local Authority.

My solicitor says Bank (mortgage provider) interested is protected as their concern is property is fit for habitation. I will receive a completion certificate at some stage but the builder will not undertake to deliver in a time frame. My solicitor requested it to be delivered within 2 years
But I would need the completion certificate when I plan to sell my property, Also the temporary Habitation certificate will expire in 2 years time.