Paragraph 2 New homes warranties – general

(1)

A new homes warranty complies with this Schedule if it—

(a)

is made under the arrangements described in Part 2; and

(b)

contains, as a minimum, the terms described in Part 3, although the term described in paragraph 10 must only be included where the new homes warranty makes provision for a developer’s obligations to the policy-holder.

(2)

Any warranty dealing with any defects in the design, building, or completion of the property, which contains—

(a)

terms additional to those described in Part 3 of this Schedule (without excluding or limiting them); or

(b)

terms more favourable to the policy-holder than those described in Part 3,

may be regarded as complying with this Schedule.

(3)

A new homes warranty may be regarded as complying with this Schedule if it contains—

(a)

any of the limits described in Part 4; or

(b)

any limits of a type described in that Part, but which are more favourable to the policy-holder.

(4)

Any new homes warranty which contains terms less favourable to the policy-holder than those described in Part 4 does not comply with this Schedule.

(5)

The undertakings described in Part 3 of this Schedule must be made in the new homes warranty by a warranty provider.