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Property hand-over procedures after construction – What needs to be considered?

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Property hand-over procedures after construction – What needs to be considered? - Analysis - construction

Upon completion of construction works, a seller or contractor usually wishes to swiftly hand-over the completed property to its buyer and thereby trigger further payment obligations of the buyer.

At the same time, a buyer may wish to thoroughly verify that all works have been performed and completed as agreed and a good quality product free of defects and faulty work constructed which may take some time. In order to address these conflicting interests, it is advisable for both parties to agree on proper written hand-over procedures which can be described under carefully drafted sale and purchase or construction agreements. This usually helps to minimize the risk of dispute over defects or non-conformities which may adhere to a property. Nevertheless, the importance of proper hand-over procedures are often overlooked or neglected at the time of executing the required sales documentation.

In practice, when a seller or contractor deems its contractual obligations as completed, he will send a completion notice upon the buyer advising completion of the construction works including invoice requesting final or further payment.


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