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Vendors' solicitor frequently asked questions

Click on a question to reveal the answer or reveal all answers.

When is the Buildmark cover note issued?

Most mortgage lenders will not release funds for the purchase of a new home until a warranty provider has issued a cover note.

After making their final inspection and provided that they are satisfied with the standard of construction of the home, our inspector will issue a cover note and hand it to the builder.  The builder should pass on the cover note to you to send to the buyer's conveyancer as soon as possible, in order to avoid any delay in the release of funds in time for completion.

When is the Buildmark insurance certificate issued?

Following the issue of a cover note and online acceptance via the Buildmark acceptance system by the buyer's conveyancer, we will issue a Buildmark insurance certificate. Where our subsidiary NHBC Building Control Services Ltd has acted as the Approved Inspector, the Buildmark insurance certificate will include a statement that 'This home is subject to NHBC's Building Control'. This is confirmation that the Building Control Final Certificate has been issued to the Local Authority.

What if I am acting for a shared equity scheme?

Buildmark documents for equity sharing arrangements are the same as for standard private development sales as described above.

The Buildmark offer documents are provided by the NHBC registered builder who will not necessarily be the same party as the equity sharer/lessor (e.g. a Housing Association).

What if I am acting for the sale of a home on a mixed use development?

Buildmark cover is often provided for residential dwellings forming part of a mixed development.  Typically these dwellings are apartments within a building that includes an element of commercial use, such as retail outlets.

Where NHBC provides Buildmark cover for residential dwellings in mixed use developments, we may also provide Buildmark Connect cover to provide complementary cover for the non-residential parts of the development.

N.B. Where Buildmark Connect or similar cover is not provided, careful consideration should be given to the issue of who is responsible for attending to defects in non-residential parts of the development and how responsibility for attending to defects in common parts is shared by residential and non-residential occupiers.

What about legal assignment of Buildmark cover to a subsequent purchaser?

It is not necessary for second and subsequent owners to take an assignment of the benefit of Buildmark cover. They take the benefit of the years remaining on the cover once their purchase of the home is complete.  Your client's obligations under the policy remain unchanged.

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