Guarantees according to the Housing Construction Act

Guarantees according to the Housing Construction Act

  • Fulfillment guarantee / Implementation guarantee – Housing Construction Act §12. The contractor or client shall, when entering into a home purchase contract with the consumer, immediately provide a guarantee for fulfillment of the contract.
  • Complaint guarantee – The Housing Construction Act §12. The guarantee must ensure that the consumer can correct any errors and omissions in the complaint period of 5 years after taking over the home.
  • Advance guarantee – Housing Construction Act §47. At the time of entering into a purchase contract for a home, the seller normally requires the buyer to pay an advance corresponding to 10% of the contract amount. The advance must be in a locked account with the real 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