Homebuyers dealing with builders not covered under the new code of practice aimed at preventing gazumping do so at their own risk, the Irish Home Builders Association (IHBA) has said.

The association yesterday issued its code aimed at preventing the practice and said up to 80 per cent of house builders would be covered by its provisions. It added that caveat emptor would apply to transactions with builders not adopting the code requiring IHBA members to fix the price of a property for a month, without accepting other offers. If an IHBA member does not honour this they will face several potential sanctions, said the director of the association, Mr Michael Goggins, including fines, expulsion from the association and publication of their name in national newspapers.

The Purchase Protection Pledge takes effect from February 1st and will be displayed at IHBA sites and in advertisements.

Mr Goggins said any builder involved in gazumping from now on "would be breaching the code, but not the law". He said publishing names in the newspapers would be "a last resort", but if it was done the names would appear prominently. The code also covers the phased release of developments. Mr Goggins said there had been some suggestions that builders delayed the release of property so that "prices would be ratched up".

He said under the code builders selling properties "will give all relevant details of the phase of the development being sold" and what prices are to be charged.

Up to now the schedule of payments when buying a property has been informal. Under the new code a formal arrangement will operate.