Generally, contract terms and notices are unfair if, they put the homeowner or consumer at an unfair disadvantage.

CRA 2015 applies a “fairness test”. This states any standard term is unfair if it causes a significant imbalance in the positions of the parties. To the detriment of the consumer in a way which is contrary to the requirement of good faith.

The terms and notices must be “transparent and prominent”. Which means that the builder must use plain and intelligible language in its written terms, so that the homeowner or consumer has the chance to read and understand all the terms before agreeing to the contract.

Notices must be brought to your attention. This should be in such a way that the average consumer would be aware of them. It is important for the builder to be up front about important terms that, could have a significant impact on you.

The price and any subject matter terms must not be hidden in any small print otherwise the price, and the subject matter terms will be assessed for “fairness”.

Top Tip: House builders should review their contracts including any notices such as website terms. This is for compliance with the unfair terms provisions. This is relevant where the main terms describe the subject matter of the contract, and how the price is presented.

Top Tip: If the contract term is drafted so widely that it could be used in a way that harms the consumer. If the consumer is unlikely to understand the wording of a clause, that it has potential for unfairness. Also if it likely to mislead, or be intelligible to consumers. You have right to challenge unfair terms.

Under the CRA 2015, you are not bound by a term in a contract with a builder, if that term is deemed to be unfair. You have the right to challenge the term, if you think it is unfair. The fairness of a term can only be assessed in the context of all the circumstances surrounding the contract.

Where a term in a consumer contract, or consumer notice has different meanings, the one most favourable to the consumer will prevail. The courts are under a duty to consider the fairness of a term in a consumer contract. This is whether or not a party has raised the issue. Only a Court can decide whether a term is fair.

You can report a contract term you think is unfair to your Local Trading Standards Department. Or the Competition and Markets Authority (CMA)which have enforcement powers to deal with breaches of the unfair terms rules.

Did you know that unfair terms are not enforceable against the consumer? Enforcers such as CMA can also take action to stop them using it.

You Can Challenge Unfair Terms Such As:

• Charged excessive deposits or cancellation fees
• If the price has been changed and the scope of work has not changed
• Changing the terms of a contract
• Responsibility if things go wrong
• Charges have been hidden in the small print
• Disproportionate default charges been made.

You Cannot Challenge Terms If You:

1. a) Claim that a price you’ve agreed to pay is unfair because you found the same item cheaper somewhere else.
2. b) Claim a contract for an extended warranty is unfair because it offers much less cover than another one you could have bought for a similar price.
3. c) Challenge terms that you have negotiated with the seller. You can only challenge a contract’s standard terms and conditions.

Top Tip: When considering the contract terms  check if it avoids ambiguity. Is it open and fair? (check small print). Are ordinary words used. Or are any legal jargon or technical language used. Is it a reader friendly written contract with subheadings and terms legible? Have the terms describing the contract main subject matter, and price brought to your attention. Is it easy to understand.

Did you know? There is a useful guidance on unfair terms in the contract provided by the government. See link:https://www.gov.uk/guidance/unfair-terms-explained-for-businesses-full-guide