The ‘Building Safety Act’ 2022 (‘the Act’): cue the solicitor’s hands to the head in exasperation! In my fifteen wonderful years of conveyancing, I struggle to think of any legislation that has caused such an impact.
Some 171 sections and 11 chunky Schedules, analysing the Act makes for a terrifying prospect.
The need for the Act arose due to the tragedy of Grenfell in 2017, the government realising that construction and building standards in high rise buildings, in this case cladding, were sadly not up to scratch.
Designed to review, remedy, and protect, the Act covers a wide range of matters, however it is Schedule 8 that appears to have the greatest impact in the conveyancing sector to date. If a building has at least two dwellings, is at least eleven metres in height, measured from the ground to the floor of the top storey, and is not a leaseholder-owned building, the building will be defined as a ‘relevant building’.
When acting in a conveyancing transaction where the subject property is within a ‘relevant building’, the additional work involved for both sides of the transaction is often complex and can be vast, evidenced by the number of law firms who still, a number of years after the Act was implemented, refuse to act in such matters. For this reason, the limited firms who are continuing to take on such matters are usually charging an additional fee to do so.
Certain additional questions must be raised and answered which centre around a Deed provided by the Seller and a Certificate provided by the landlord. But do not be fooled, given the complex nature of the Act and the uncertainty that some practitioners still have, obtaining correctly drafted documents first time round is rare.
After the inevitable backwards and forwards that entails between solicitors and the landlord to conclude with the correct documentation, the information contained therein must be reviewed, with the implications reported to the Buyer. The Act generally will provide either:
- no protection, meaning that the Buyer and future owners are liable for their share of remedial costs, as defined in their lease, for works caught by the Act;
- some protection, meaning that the Buyer and future owners may be protected against cladding remediation costs but must contribute towards their share of non-cladding remedial costs, as defined in their lease, for works caught by the Act; or
- full protection, meaning that the Buyer and future owners will be fully protected against all remedial costs relating to cladding and non-cladding remedial costs.
The level of protection offered by the Act is causing havoc in the industry at present with many transactions becoming abortive due the subject property having limited or no protection.
If you are looking to purchase or sell a property that is a within a ‘relevant building’, it is essential that you instruct a specialist solicitor who understands the full implications of the Act. Sweeney Miller Law can give this specialist advice, and I have done so in many regions of the country to date. Please do reach out if you would like a quote to sell or purchase your property whether within a ‘relevant building’ or not.
Damien Todd
Partner
Sweeney Miller
damien.todd@sweeneymiller.co.uk