Unfair terms in building contracts – reminder

There has been an increase in the number of queries to the Conveyancing Committee about unfair terms in building contracts for new housing. The committee would like to remind the profession of the provisions of the European Communities (Unfair Terms in Consumer Contracts) Regulations 1995, which apply to building contracts, and to the content of the High Court order obtained by the Director of Consumer Affairs, with the support of the Law Society, in December 2001. The text of 15 conditions that were declared by the court to be in breach of the regulations can be accessed on the ‘Resources’ subpage of the committee's page on the Society’s website.

The High Court order also provides that conditions that have like effect as the 15 prohibited conditions are also in breach of the regulations.

Practitioners are also directed to the practice note published jointly by the Registrar of Solicitors and the committee in the December 2005 issue of the Gazette, which confirms that alleged breaches of the regulations will be considered as a complaint by the Society’s Complaints and Client Relations Committee and, if any such complaint is upheld, it may be deeded to be misconduct and, if so found, will be dealt with accordingly.