Building Warranties

If you are buying a building you may well want some warranties as to the quality of the build.  Houses and flats may either have an architect’s certificate or guarantee from a recognised organisation such as NHBC.  However presumably for historical reasons there is a completely different regime for commercial properties involving what are called Collateral Warranties given by some of those involved in the construction including for example the architect, a structural engineer and the builder.  These can often be problematical in the purchase of commercial buildings, especially because banks and other money lenders have very high standards as to the quality of the Collateral Warranties they expect.  So if the building is erected without the correct warranties, then it may be difficult to sell or mortgage.   So from the start ensure that you have the proper advice about the correct warranties.

Bruce Scobie


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The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

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