When a homeowner decides to renovate their property, there are a wide range of legal and practical issues to consider before going ahead with the project.
In the excitement of big ideas, these issues should not be overlooked.
Neil Molyneux, a senior associate in Appleby’s Bermuda office, is a property law specialist and a member of the firm’s property team.
He said several potential issues can be addressed by a careful review of the property deeds – the legal documents that demonstrate ownership of a home.
“Your planning application in respect of the renovation requires a declaration that you own the land; therefore, check your ownership,” Mr Molyneux said.
“You should also review the boundaries from your deed plan, so that any required setbacks can be assessed by your surveyor, architect, or contractor.”
Mr Molyneux added: “Sometimes, restrictive covenants affect property and can prevent certain development. Therefore, check the deeds and if in doubt consult a property attorney.”
Many homeowners will have purchased their property with assistance from one of the island’s banks.
Mr Molyneux said: “If you have a mortgage, check that the bank has no objection to your renovation proposals and get the bank’s agreement in writing.”
Several issues arise due to legislation that has been enacted in Bermuda.
Section 34 of the Development and Planning Act 1974 allows the minister responsible for planning to enter into agreements with owners to regulate the development or use of land.
Meanwhile, similar legislation places restrictions on what type of renovations can be carried out on listed buildings, and what works can be done in designated conservation areas.
Mr Molyneux said: “Section 34 agreements, listed buildings and conservation areas can affect renovation plans. Therefore, check with the planning department or a property attorney in advance to determine if your land is affected.”
As not all renovations in Bermuda require planning permission or building regulations consent, Mr Molyneux said that it is important to check with your surveyor, architect or contractor to determine if your plans are exempted from a requirement for permission.
Historically, many disputes have arisen between property owners and those that they have hired to do renovation work on their home, so it’s important to protect yourself against potentially unhappy outcomes.
Mr Molyneux said: “Use written contracts detailing the scope of work, payment schedules, warranties, and the method of dispute resolution. You should be clear about costs and how problems are to be resolved.
“Ideally, no payment should be made until the work is completed to the homeowner’s satisfaction. However, a holdback of a meaningful payment for, say, six months may be more likely. With a payment delay or holdback there is a monetary incentive to fix any snagging properly.”
It’s important to investigate insurance matters as well.
“Check to ensure that your contractor has public liability insurance and that any damage to your home is insured by either you, or the contractor. In the latter case, ask to see copies of policies and check with the insurer directly.”
Mr Molyneux also warned: “As a landowner, you may be liable for death or injuries so make sure to request in writing that the contractor is responsible for checking that the site is safe for you, workers and the public.”
