Building agreements in new dwelling sales

Conveyancing 07/07/2017

The Conveyancing Committee has received complaints from solicitors for purchasers of new dwellings that some builders are refusing to provide a building agreement as part of the contract documentation for the purchase. The committee disapproves of a purchaser of a new house not getting a building agreement, as the purchaser is entitled to the benefits of the covenants in such an agreement.

The committee suggests that solicitors acting for purchasers also consider whether or not they are in a position to give a certificate of title to a lending institution in a residential lending case if there is no building agreement.