If you can’t reach a resolution with a Buyer relating to a Complaint, then the Buyer can elect to raise their Complaint as a formal Dispute and apply to the Code’s
Independent Dispute Resolution Scheme (IDRS), which is operated by
CEDR.
The IDRS is free for Buyers. Developers will be charged a case fee (which can be reduced if you reach an “early settlement” agreement).
Buyers can access the IDRS if:
– you don’t respond to a Buyer within 20 working days of them making their initial Complaint to you for any reservations made from the 1st January 2024 (or 30 working days for reservations made up to and including the 31st December 2023), or
– after 56 working days has elapsed from them making their initial Complaint to you.
If you reach a ‘deadlock’ position and can’t resolve an issue informally, then the Buyer can also elect to raise their Complaint as a formal Dispute and apply to the IDRS.
The independent Adjudicator’s decision is binding on you as Developer. If a decision is awarded in the Buyer’s favour, you must either pay the financial amount awarded to them, or take the action required by the Adjudicator. If you do not comply, then this will be treated as a disciplinary matter and will be enforced by Consumer Code for New Homes.
Buyers do not tend to make a Dispute formal unless they feel they have genuine cause to do so. The Adjudicator will consider both parties’ submissions and it is not guaranteed that the decision will always be in the Buyer’s favour – it will be decided on a case by case basis considering the facts presented by both the Buyer and the Developer – however as Developer, you must present a response to the Buyer’s Complaint to the IDRS, and the more detail and evidence you can provide, the better to substantiate your position. If you do not present an adequate response within the required timescales, the Adjudicator is likely to find in favour of the Buyer.