Compliance is becoming a commercial issue
The Building Safety Act has fundamentally changed the way property transactions are assessed. Compliance with the legislation is not only a technical exercise but a commercial issue that can influence deal timelines, valuation, buyer confidence and impact risk transfer via Warranty & Indemnity (W&I) insurance.
Rising expectations across the transaction process
Increasingly, buyers, legal advisers and insurers expect sellers to demonstrate that Building Safety Act obligations have been considered (and complied with) before a property (or property holding SPV) is brought to market.
Where information is incomplete, transactions can slow down while documentation is located, refreshed or produced. This applies most directly to occupied higher-risk buildings (HRBs) — buildings of at least 18 metres or seven storeys containing two or more residential units — where golden thread information duties sit with the Accountable Persons and the Safety Case Report duty sits with the Principal Accountable Person under Part 4 of the Building Safety Act 2022; wider fire safety documentation remains relevant across the portfolio.
Common challenges sellers encounter
In our experience, the most common challenges include incomplete Golden Thread information, Safety Case Reports that require updating, historic fire risk assessments (required under the Regulatory Reform (Fire Safety) Order 2005, as amended) that no longer reflect current requirements and fragmented building safety records.
The case for early preparation
Rather than waiting for these issues to emerge during due diligence, sellers can take a proactive approach. A structured readiness review enables sellers to identify gaps early, prioritise remediation and prepare a comprehensive compliance pack before engaging with buyers.
Early preparation can help:
- Reduce transaction delays
- Improve buyer confidence
- Support stronger W&I insurance outcomes
- Minimise avoidable negotiation points
- Demonstrate robust governance.
Aligning readiness with insurance expectations
Clear Risk Management works with sellers to assess Building Safety Act readiness, coordinate remediation and prepare evidence that supports successful transactions. Working alongside Clear Insurance Management's specialist M&A insurance team also helps align compliance preparation with insurer expectations.
Understanding your current position
If you are preparing to sell an asset or portfolio, now is the time to understand your current position.
To receive a copy of our free Building Safety Act Seller Compliance Toolkit, complete the form via the link below and we'll send it directly to your inbox.
