Dispute Resolution

1

Are there any time limits set for asking for a case to be referred to independent dispute resolution?

Yes.  Cases have to relate to a complaint that was first made within two years of completion of the Home.  In addition, a case has to be brought within three months after the date of the Home Builder’s final response to the original complaint or within three months after the date of the original complaint, whichever is the later.

2

What does the Home Buyer have to do before asking for a dispute to be referred to the independent dispute resolution scheme?

First, they must first explain their concerns to their Home Builder, giving the Home Builder the opportunity to investigate and put things right. 

If a Home Buyer has given their Home Builder a reasonable opportunity to resolve the issues and there are still outstanding matters or a dispute exists, then the Home Buyer should contact their Home Warranty provider for further guidance.

3 

What happens if the Home Builder refuses to pay their part of the dispute resolution case fee?

The Home Warranty Body will cover this fee so as to allow a case to proceed.  If this situation occurs, the Home Warranty Body will be advised automatically and this should be resolved without the Home Buyer’s intervention.  The Home Warranty Body will then pursue debt recovery from the Home Builder.

4 

What happens if a Home Builder refuses to pay an award made in the Home Buyer’s favour?

The independent dispute resolution is entirely independent of the Home Warranty Bodies so the Adjudication Decisions are not insured. 

If Home Buyer accepts the Adjudicator’s Decision, it can be recognisable in the court as strong evidence of the validity of a claim against the Home Builder and can be used to obtain a court order against them.

5 

How long does the Adjudication process take?

There are certain time periods built into the scheme for actions by both the Home Buyer and the Home Builder.  Overall, once the Home Buyer has submitted their claim form, the final Decision of the Adjudicator should be issued within 8 weeks.

For further guidance on the adjudication time line, please refer to the downloadable Adjudication Time-Line chart.

6 

Could a Home Buyer ask for numerous small value claims to be referred to the independent dispute resolution scheme?

There is no limit to the number of claims a Home Buyer can make. However, they have to pay a fee for each one and there are time limits for disputes to be referred to the dispute resolution scheme.

7 

What happens if the two-year time limit for complaints is exceeded and the Home Builder’s final response is made after the time limit?  Will this prevent a Home Buyer from asking for independent dispute resolution?

No.  Provided the Home Buyer asks for the complaint to be referred to independent dispute resolution, completes the application form and submits it with their fee within three months of the Home Builder’s final response, the matter can still be considered.

8 

Can a Home Builder ask for a dispute to be referred to independent dispute resolution?

Yes, but only with the agreement of the Home Buyer.  All the normal process, rules and fees will still operate.

9 

Why is the independent dispute resolution process compulsory on the Home Builder but not on the Home Buyer?

Because this is how consumer law works – the supplier is considered to be in a stronger position than that of the consumer and therefore better able to protect themselves.

10 

Will the decision made through the independent dispute resolution scheme be in full and final settlement or can the issues still be taken to court?

It is not possible for anything to interfere with a consumer's right to take a matter to a court of law.  The dispute resolution process therefore cannot be in full and final settlement. 

However, if a matter has been heard and properly considered through an independent dispute resolution process, it is unlikely for a court to want to go through the whole process again – unless it can be demonstrated that there is evidence to show that the dispute resolution process or decision was flawed in law.

11 

How can a ’documents only’ process deal with technical issues and problems arising from the construction of homes; isn’t a physical inspection required.

Technical issues will largely be dealt with by the Home Warranty Bodies and would not therefore be referred to the dispute resolution service provider.  

If there are issues of a technical nature that fall outside of the scope of the warranty scheme, the Code’s independent dispute resolution provider will determine if they are of a nature which they can decide upon, or advise the Home Buyer to consider their legal rights under the contract of sale.

12 

If a builder wins the case at adjudication can he get his case fee back – is this returnable under the adjudication scheme?

No. 

13

There have been instances where builders have been taken to court by home buyers when the site has been re-planned to include smaller or social housing and the homebuyer claims loss of value because of this.  Is this covered under the Code and if so where and how would it be treated?

The scope in the Consumer Code specifically excludes loss of value or blight.  If the home buyer felt aggrieved at a possible reduction of value, they would have to consider appropriate legal action.

14

Will the decisions of cases referred to independent dispute resolution be published?

Significant decisions will be published, but not so that it would be possible to identify individual Home Buyers or Home Builders.

An annual report of the Consumer Code scheme will be published with summary information on all cases decided and the levels of payments made, along with other information on the monitoring of customer satisfaction and the implementation of the code.

15

 

If a Home Builder ceases trading before sorting out defects in a Home, and the Home Warranty body steps in and does the work, can the Home Buyer still ask for independent dispute resolution to be able to make a claim for inconvenience?

No.  The Home Owner had the benefit of being protected under the home warranty for the cost of the repairs and reasonable out of pocket expenses, as stated in the Home Warranty insurance policy document.  They would not have to pay for the Home Warranty body to investigate their problems and would not have to prove their case.

If the Home Buyer has a dispute with their Home Warranty provider about the extent of the work required or other issues covered by the warranty insurance they can pursue the complaint through the Home Warranty body’s dispute resolution process and, they have the right ask for their complaint to be referred to the Financial Ombudsman Service.

 16

If a Home Buyer employs an expert to handle their case, can those costs be recovered through the independent dispute resolution scheme?

The scheme is meant to be one that is speedy, low cost and simple.  As such it is not necessary for a Home Buyer to use professional advisors.  If a Home Buyer decided to employ someone to pursue their case the costs associated with this would not be recoverable under this scheme.

However, if the problem was particularly complex,  the Adjudicator appointed to decide the case has the authority to decide whether or not such expert fees were justified, especially if the Home Builder was clearly liable for the problem and, prior to referral, had refused to settle a claim.  If the issues are too complex for the scheme to resolve, the parties will be advised to use more suitable legal routes.

17

 

If a Home Buyer makes a claim under the warranty and it is rejected could he refer the claim to the Home Builder or the independent dispute resolution scheme?

No; the independent dispute resolution scheme is for matters outside those covered by warranty.  If the Home Buyer disputes Home Warranty Body’s decision, they have to consider other routes such as formal arbitration under the Home Warranty scheme.

18

 

Where a Home Builder achieves an agreement as an “early settlement” prior to an adjudicator being appointed, can this be covered by a confidentiality agreement and be made as full and final settlement?

Yes.  Agreements to settle disputes that are reached before an Adjudicator is appointed are private matter between the parties and can include whatever clauses each party agrees to.

Cases that are decided upon by the adjudication scheme and a formal Decision issued cannot be bound by a “full and final settlement” clause. 

19

Under clause 5.2, given that the Home Warranty covers all the technical aspects of the building, what kind of dispute over building work could be referred to the independent dispute resolution scheme?

This could include technical issues that are more a matter of contract than a breach of the Home Warranty Body’s standards.  For example, the contract and specification for the Home might state that gold- plated taps are installed, whereas the Builder has only provided chrome taps.  Whilst this would not be a breach of Home Warranty, there might be a breach of contract.  The cost of replacing the taps might be something that could be referred to the independent dispute resolution scheme.

External works, such as the public open spaces, or a children’s play area that were shown in the sales information or plans provided to the Home Buyer but have not been provided.  These are not covered by Home Warranty, so could (provided they are not subject to specific agreements with the Local Authority) be referred to the independent dispute resolution scheme.  Matters that are covered by agreements with Local Authorities should be referred by Home Buyers to the Local Authority for resolution.