Paragraph 10 Developer cover

(1)

This paragraph applies—

(a)

where the new homes warranty makes provision for a developer’s obligations to the policy-holder in respect of the matters described in paragraphs 11(1)(a), 11(1)(b) and 12(2)(a) of this Schedule, or any other any defects or damage to the property; and

(b)

such a defect is apparent or such damage occurs at any time during the warranty period.

(2)

Under such a new homes warranty, a warranty provider must undertake that—

(a)

a warranty provider will meet all such obligations if the developer fails to do so (or no longer exists and has no successor), or provide financial compensation in respect of the obligations;

(b)

it will provide a resolution or conciliation service—

(i)

the aim of which is to resolve any disputes between the policy-holder and the developer relating to such obligations and their timely fulfilment; and

(ii)

for which no payment or consideration in kind is charged to the policy-holder;

(c)

if the resolution or conciliation service described in paragraph (b) recommends that remedial work to the property should be conducted by the developer, a warranty provider will use all reasonable endeavours to ensure that the developer carries out such work;

(d)

if the developer fails to carry out such remedial work (or no longer exists and has no successor), a warranty provider will carry out the work instead, or provide financial compensation for it; and

(e)

if the resolution or conciliation service described in paragraph (b) does not prove satisfactory to the policy-holder, it will make available to the policy-holder another form of resolution or conciliation service which is independent to that warranty provider.