The non-owner-occupancy clause for owner-occupied homes: what does it mean?
Anyone looking to buy a home these days will increasingly come across the non-owner-occupancy clause in advertisements. For many buyers, this raises questions: what exactly does this clause mean, why is it used and to which homes does it usually apply?
What is a non-owner-occupancy clause?
A non-owner-occupancy clause is a provision in the purchase agreement in which the seller indicates that he or she has not (recently) lived in the property themselves. This may be the case, for example, with a property that comes from an estate, is being sold by an investor or has been owned by a housing association.
The essence is that the seller does not have first-hand information about the use and condition of the property. Think of issues such as noise pollution, the quality of the installations, the presence of leaks or other hidden defects.
Which properties does this often apply to?
The clause is usually found in properties that:
- Come from an inheritance; the heirs have often never lived in the property themselves.
- Are being sold from rental; for example, when a private investor or housing association decides to sell the property.
- Are being sold on a project basis; in some new-build or transformation projects, the seller is a developer, not a resident.
In all these cases, the seller cannot explain from personal experience how the property functions in everyday use.
What does this mean for the buyer?
The non-owner-occupancy clause limits the seller's liability. Because they did not live in the property themselves, they cannot give any guarantees about, for example:
- the functioning of installations (central heating boiler, electricity, sewerage)
- the absence of defects that only become apparent through daily use
- the quality of living and the living environment
For the buyer, this means that the duty to investigate carries extra weight. It is wise to:
- have a structural survey carried out
- ask the estate agent or property manager additional questions
- carefully check whether documents such as maintenance reports or service history are available
In summary
The non-owner-occupancy clause is not a reason to pass on a property, but it is a signal that the buyer and/or purchasing agent should be extra vigilant. Because the seller does not know the property from personal experience, the responsibility for investigation and inspection lies largely with the buyer.
As the seller does not have first-hand knowledge of the property, the responsibility for investigation and inspection lies largely with the buyer.
