EQC clauses in Agreements for Real Estate
Watch out for those EQC clauses when Buying and Selling properties.
For the most part, properties are sold via a real estate agent who will have their own generic clauses. These clauses may not be specific enough to address the issues with EQC. Consideration needs to be given to:
- When the EQC claim was made
- Is it settled
- How was it settled eg cash settled and who did the repairs or was it EQR/Fletcher managed
- What, if anything, is there to assign
- Can it be assigned ie were the current vendors assigned the claim(s) from the previous vendor
With the passage of time and so many properties bought and sold over, it can sometimes be difficult to determine exactly what has occurred unless good records have been taken. Legal advice should be taken at the outset to craft the EQC clause particular to your property. Vendors need to be mindful of their obligations when assigning claims and what they are assigning. This should be fully discussed at the time a property is listed for sale, in light of, what EQC cover:
- Household contents
- Residential Dwelling
- Land Remediation
- Increased Flooding Vulnerability for some designated areas
- Increased Liquefaction Vulnerability for some designated areas
If you are selling your property and you have been advised by EQC of compensation for land remediation, flooding or liquefaction vulnerability then you need to talk to your lawyer before agreeing to assign the claim.