When is it Okay to Take Possession?

Completion-When-is-it-ok-to-take-possession1 You must ensure three things before taking possession.

Things to do before you take possession

In order to take possession of your new home, you must first complete the following:

  1. Your valuer must revisit the home and declare it finished (issue a Completion Certificate), and also advise what, if any, work is incomplete. If you have not completed, or did not intend to complete, all the work as has been reflected in your valuation, this can be a pitfall. If for example, you wish to complete your driveway later, but your valuer has included this in their original valuation, then the home will be deemed incomplete, and a retention recommended. This can cause a delay in possession, so it is important that your home is completed to the level reflected in your original valuation.
  2. Your local council must issue a Code of Compliance Certificate. The builder normally arranges this, but this can take some time to process so you need to be proactive to ensure you have a copy upon possession. NewBuild recommends you plan on taking possession several days after the council inspector provides a clear field inspection to avoid that unnecessary “mad rush” and stress at hand over.
  3. You must arrange to have home owner's insurance cover in place as your builder's cover normally expires at the time you start putting your belongings into the new home. Caution here: once you start putting personal items in the home, even if the home is not quite finished, your builder's insurance (Builder's Risk Cover) may not protect your belongings, and in fact may not cover the house.

When should you not take Possession

Occasionally, issues around your build that could not be resolved, structural  issues, or issues that have not been accepted by the Territorial Authority (council building Inspector), may remain unresolved.  Even if your builder encourages you to take possession, and you may be under financial pressure to take possession (you have given notice on your current home or your loan repayments have started), it is unwise to take possession unless you have in writing the requirements to remedy the problem, and an agreed timeframe.  If the matter is structural and securing an CCC is unlikely without remedial works, you should not take possession.

Taking possession reduces or removes your legal rights to hold off making the full and final payment to your builder.  If you have any concerns about your rights you should seek sound legal advice and discuss your concerns with NewBuild as we can provide further guidance.

Taking possession without making your full and final payment in nearly all instances will void your third party guarantee.