In brief
Seven essential checkpoints for landowners in a flat-for-land construction agreement: allocation, delivery date, completion cover and technical specification.
Flat-for-land construction is one of the common ways for a landowner to realise the value of a plot. How smoothly the process goes depends largely on the details of the agreement. This article is for general information only and does not replace legal or financial advice.
011. Clarity on allocation and units
The units that will go to the landowner and to the contractor should be written out clearly — by floor, orientation, gross/net area and number. Words such as “approximately” create uncertainty.
022. Start and delivery dates
The start date, delivery period, force-majeure situations and each party’s obligations in the event of delay should be clearly defined.
033. Completion cover
The agreement should state what security is provided against the risk of the project being left unfinished, in whose favour it is held and what it covers. Completion insurance and construction-completion insurance are considered under this heading.
044. Architectural design and technical specification
The agreement should refer to the architectural design to be built, the quality class of materials and the technical specification, so that “what will be delivered” is known in advance.
055. Responsibility for permits and legal procedures
It should be clear who handles the building permit, occupancy certificate and other official procedures, within what time, and who bears the costs.
066. Formal requirements and title deeds
Agreements of this kind are generally drawn up in formal notarised form. The registration of units in the land registry and its timing should be planned in advance.
077. After handover: defects and warranty
You should know how reporting routes and time limits for defects arising after handover are regulated, whether in the agreement or in the relevant legislation.
Under Falcon Assurance we offer completion insurance and construction-completion insurance in our flat-for-land agreements. If you would like a preliminary assessment for your plot, please get in touch.
