The Residential Construction Act
- Fulfillment guarantee/Implementation guarantee – Residential Buildings Act §12. When entering a home purchase contract with a consumer, the contractor or builder must immediately provide a guarantee for fulfillment of the contract.
- Complaints guarantee – Housing Listing Act §12. The guarantee must ensure that the consumer can correct any errors and defects during the complaint period of 5 years after taking over the home.
- Advance guarantee – Residential Building Act §47. At the time of entering a purchase contract for housing, the seller normally requires the buyer to pay an advance equivalent to 10% of the contract sum. The advance must be kept in a locked account with the estate agent/lawyer until takeover. The seller can release this capital for use in the project or in other projects as equity. To release this capital, the seller can use an advance guarantee
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