GIW-garantie
GIW guarantee
The GIW guarantee is a warranty scheme for newly constructed dwellings that protects the purchaser against construction defects and the contractor’s bankruptcy.
The GIW guarantee is issued by the Garantie Instituut Woningbouw and affords purchasers of new-build dwellings protection of an insurance-like nature. The scheme ensures that the property meets the applicable quality and construction standards and that any defects are remedied within a specified period.
The guarantee is material in that it provides the purchaser with financial security where the contractor refuses or is unable to carry out remedial works, for example in the event of insolvency. It thereby strengthens confidence in the new-build market and is frequently a condition precedent to mortgage finance.
In practice, the GIW guarantee is included as standard upon the purchase of a dwelling from a contractor affiliated with the institute. In the event of a complaint, the purchaser may invoke the guarantee, whereupon an independent inspection is carried out.
“The buyer invoked the GIW guarantee when the contractor refused to repair the roof leak.”
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