Consultants and contractors might think that once their original client no longer has an interest in a project they are, in the absence of a collateral warranty or third-party rights, safe from claims from a new owner. That may not be the case. Take the following scenario. A landowner enters into a building contract to build a property on its land. It then sells the land and the property on it. After the sale a defect in the property comes to light. The new owner has no redress against the previous owner.
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