Gardner Leader

27th September 2007

This month Stuart Durrant, Conveyancing Partner at Gardner Leader Solicitors, takes a look at the problems that can arise in property transactions through faulty heating systems; something we all need to start thinking about at this time of the year.

Occasionally, faulty boilers or central heating systems come to light after completion of a property transaction. Recently I have had three situations where this has been the case, where my clients bought a property, we had asked the seller to confirm that the heating system was functioning properly and subsequently, this proved to be incorrect.

The law governing boilers and central heating systems is a tightly controlled and regulated area. Since April 2002, the installation of central heating boilers, systems and controls has been a "Controlled Service" as covered by the Building Regulations part L. What this means is that a “competent person” must install the boiler, and currently a competent person as defined by the regulations is:

• A CORGI registered installer for gas installations
• A HETAS registered installer for solid fuel systems
• An OFTEC registered technician for oil installations

As part of my pre-contract enquiries, I always ask the seller’s solicitor to confirm that their client’s central heating system, if installed post April 2002, has been installed by the appropriately qualified engineer and that the system will be fully functional on completion.

Clearly the importance of a competent installer is threefold:

1. For health and safety reasons to avoid a risk of explosion or carbon monoxide poisoning.
2. For cost and environmental concerns to ensure that the boiler is running as efficiently as possible.
3. To make sure the homeowner has a reliable appliance that is integral to the running of the home. 

Currently many, but surprisingly not all, of my clients commission a Homebuyers Report to be carried out on their potential purchase. Good though these surveys are, they invariably do not provide information on, nor do they involve a detailed inspection of the central heating system.

And this is where the principle of ‘caveat emptor’ or ‘let the buyer beware’ raises its head. In other words it is for the buyer through his surveyor to discover any physical defects in the property. If the buyer fails to do this and the heating system is defective, it ceases to be a problem for the seller and becomes the buyer’s problem. For this reason I advise purchasers to obtain a report on the boiler and central heating system by an engineer with one of the recognised qualifications that I have mentioned above. If a report flags up issues concerning the central heating system, the buyer can then ask, or more likely demand that the seller either remedies the problem or reduces the price to cover the costs of repair.

My enquiry asking the seller to confirm all is well and asking for a service record can be reassuring, but it is no substitute for a specialised report. When the seller is asked to confirm that the system is working, we frequently receive a vague answer (‘yes as far as I’m aware’ or ‘yes but please check yourself’); often the seller may not know, and in rare cases may answer dishonestly. At this point resolving the problem can mean a protracted dispute.

If you are selling a property, it is worth thinking of getting your boiler serviced in readiness for the sale.  This will not only make your property more marketable compared to a property of similar value that has no servicing record, it will also show good faith on your part towards the buyers.

With autumn now officially upon us and the nights drawing in, the strain on our boilers is more apparent as our minds turn towards our thermostats to combat the chilly mornings.  It is therefore increasingly important to make sure the boiler will be working when you move into your new home to make sure that you are not left in the cold!