In the complex process of buying or renting a property, the privacy statement is an often forgotten but extremely important document. In this blog, we look at why contact protection is key when buying and renting property and how it can help buyers make informed decisions.
Since August 2021, when selling or renting a property, the law requires an electrical safety review (ESR) to be carried out to check the condition of the electrical network to avoid accidents. This obligation also applies to the seller/landlord if the boiler or other electrical equipment is equipped with a RCD, unless all the consumers in the network are protected by RCDs with appropriate parameters and there is no circuit breaker with a rating greater than 32 A. The professional who has carried out the inspection will prepare a qualification document, which should be attached to the sales contract.
What is a Contact Protection Statement?
The Declaration of Contact confirms that the electrical systems of the property comply with current safety regulations. The issuing of a declaration is linked to a contact protection inspection by a qualified electrician, during which the condition and safety of the electrical network is assessed.
Why is this important on the Real Estate Sales Line?
- Safety: most importantly, the Declaration of Contact assures the future owner of the electrical safety of the property. Without a properly documented declaration, there is a risk that the new owner may be faced with unknown defects.
- Legislative Requirements:Many countries, including Hungary, have legal requirements for the safety of electrical systems. Failure to carry out a contact protection review can lead to legal disputes, which can delay or prevent the transfer of the property.
- Property valuation: buyers feel reassured when they know that the property meets safety standards. This can also have a positive impact on the market value of the property.
How to obtain a Contact Protection Declaration?
- Choosing an expert: It is important that the inspection is carried out by a qualified and experienced electrician or contact protection expert.
- Conducting an inspection The expert will carry out a thorough inspection of the property’s electrical system. It then issues a declaration of conformity.
- Insert documentation: make sure that the declaration is part of the sales contract so that the buyer has all the necessary information.
The trend in recent years has been for property values to skyrocket, while sales (rental) contracts have become increasingly complex. This is because of the bank requirements for loans and we are constantly building experience into the contracts. One of these experiences is the growing controversy over warranty issues. One part of this is contact protection.
A contract can be written to “A” and it can be written to protect you. Choose a lawyer with extensive experience in sales and real estate law.
