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Expert Tips to Avoid Construction Defects When Purchasing Real Estate – Lawyer’s Advice

– How to avoid construction defects when purchasing real estate?

Published: 01/28/2024, 11:57 a.m.

A faulty drainage system caused this flooding in a villa between Nyon and Geneva in 2021.

DR

New villas invaded by water due to construction defects: this situation that we revealed on Sunday January 21, between Nyon and Geneva, is far from being an isolated case. “More and more people are contacting us to report problems of the same type,” explains Vaud lawyer Laurent Pfeiffer, specializing in construction law.

Alongside his main activity, he has just co-founded the company Enode SA, which offers rapid building quality inspection services. Here are his tips for avoiding problems when purchasing new real estate.

Find out about the contractor

The most important thing is to know the quality and reputation of the company that will build your property. If it was created six months earlier and its boss has already gone bankrupt three times, we have to wonder. This investigative work is all the more crucial because if the entrepreneur later goes bankrupt, it will be very difficult to obtain compensation for possible defects.

You should also be wary of prices that are too low. They mean that the company responsible for construction will have to pressurize its subcontractors, which increases the risk of defects. An architect can assess whether the cost per cubic meter seems normal, or whether it is “low on the rocks”.

Obtain guarantees

Before signing, it is necessary to ensure in the contract that the entrepreneur respects certain conditions. For example, that he will not delegate certain work to unknown subcontractors, who themselves can subcontract to others, etc. Or that the money we pay to the contractor will be used to pay for your house, and not to plug holes on other projects.

All companies involved must be properly insured. This point is crucial: Laurent Pfeiffer cites the example of a new house, built on the Vaud Riviera. Its foundations were poorly dimensioned, which created a gigantic crack in the land next door. As a result, the house next door begins to collapse. As the contractor is not insured for this type of damage, responsibility falls on the owners.

Negotiating your contract well allows you to lock in other important points. Clear deadlines must be required for delivery of the goods. And ensure that it will not be encumbered by what is called a legal hypothec. Because if the construction company does not pay its subcontractors, they can turn against the owner – and obtain a mortgage on his house. This problem can be avoided by requiring a delivery guarantee from the contractor without legal hypothec.

Report defects immediately

If defects appear after delivery of the goods, they must be reported immediately – within a week at the latest – and to all those involved in the construction site: architect, contractor, subcontractors, etc. You must have written proof of these reports, in the form of emails and letters. And be able to prove that the companies involved received these reports.

“By buying a house, you are taking a big risk. And taking it without sufficient information is worse than playing the stock market by placing all your savings in a single stock.”

Laurent Pfeiffer, avocat

Once the report has been made, compensation must be demanded within a given time frame. In the event of refusal by the company responsible for the construction, ordering a private expertise allows you to quickly determine who is responsible for the defects noted (architect, contractor, engineer, etc.).

In any case, legal proceedings against the at-fault company can last for years. A good way to avoid a long trial is to designate in advance, in the contract, an expert who will serve as arbitrator in the event of a problem. The parties must commit to respecting its verdict, whatever it may be.

Know how to surround yourself

At each stage of the project, the most important thing is to call on professionals. Have your contract reread by a lawyer, review the plans with an external architect, hire an insurance broker to check that all parties are covered… These services have a cost, but the investment is worth it, according to Laurent Pfeiffer. Because by buying a house, “you are taking a big risk. And taking it without sufficient information is worse than playing the stock market by placing all your savings in a single stock.”

Read alsoSylvain Besson is an investigative journalist within the Tamedia investigation unit. He specializes in matters affecting the financial sector. Previously, he was deputy editor-in-chief of Temps. He received a Swiss Press award in 2017 for an investigation into heavy fuel oil.More info@SylvainBesson

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2024-01-28 12:05:16
#Villas #invaded #water #avoid #construction #defects #purchasing #property

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