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ARTICLE · 09 JULY 2013

Selling A House: When A Homeowner Becomes A "Property Developer"

Nabarro LLP
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A homeowner who carries out redevelopment work to a property and then sells it on could be considered as being a "property developer".

United KingdomReal Estate and Construction
Rebecca Allwood
Rebecca Allwood
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Summary and implications

A homeowner who carries out redevelopment work to a property and then sells it on could be considered as being a "property developer" and liable to a purchaser under section 1(1) of the Defective Premises Act 1972 (the Act) for any defective works carried out to the property*.

The key trigger for establishing liability is whether a homeowner carries out the redevelopment works as a business venture with the intention to immediately sell the property for a profit.

The Defective Premises Act 1972

The Act confers a liability on contractors, consultants and developers whose work renders a property unfit for habitation due to it not being designed or built in a workmanlike manner.

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