The guidelines for construction companies and developers contain information on the collateral they must pledge. The collateral protects home buyers in situations in which the developer is insolvent or in financial difficulty.
The purpose of the guidelines is to ensure that, either during or upon the completion of construction, all construction companies and developers that are selling new homes receive sufficient information and instructions before they begin construction on the collateral that must be pledged for the benefit of home buyers, as specified in the Housing Transactions Act.
The guidelines also clarify the roles of the Consumer Ombudsman and building supervisors in terms of supervising insolvency. Alongside building control authorities, the Finnish Competition and Consumer Authority ensures that such instructions are made available to providers of housing. These guidelines are the guidelines referred to in Chapter 7, section 6 of the Housing Transactions Act.
In the spring of 2016, key stakeholder groups were asked to comment on the guidelines under preparation. Their comments were used to further improve the guidelines. These guidelines replace the 2005 guidelines “Rakennuttaja ja vakuuksien antaminen”.
The Consumer Ombudsman’s guidelines aim to provide businesses with instructions, practical advice and information regarding the application of the provisions. The guidelines are based on provisions, legal praxis and the decisions of various supervisory authorities.
Collateral pledged for the benefit of home buyers, Consumer Ombudsman's guidelines 2017.