Homebond-cracks emerge in cover offered

Luternau

Registered User
Messages
1,230
Not sure if this is correct place to post -if not, please move it.
I have just learned that Homebond cover will lapse on a development when the developer goes into liquidation or receiver appointed. This occurs because the previous (non Zurich Underwritten) scheme relys on the personal guarantees of members (developers) to fund claims. It seems designed to offer very little cover. (How they can Market such an important scheme, which is of a circular nature-Developer-Homebond-Developer- with little or no reserves to fund claims is hard to fathom)
A receiver appointed to a Developers company has to reinstate cover so nrw HB11 can be issued for any unsold units. ( banks won't approve fund release without HB11)
The recent receiver sale at Carrickmines would have required the receiver to re-establish a structural guarantee before marketing the remaining units.
Can anyone tell me what type of cover was established ( new or old Homebond) and what happened to the existing Homebond cover on previously sold units at this development or other similar situations?
What would happen to cover if all units sold but the 10 yr period had not elapsed-how would someone make a claim?
Would cover be reinstated for all under the new Zurich underwritten scheme? Or on different terms?
I am in a part sold development with receiver appointed and wondering what's in store for my Homebond cover? I also have a claim running with them that is going nowhere at present.
 
To site moderators
I dont think this my post is in the right place. Perhaps my question is best moved to the legal thread as it deals with the lapse of Homebond Cover when a Court appoints a receiver to a developer.
L
 
Buyer beware...

Anyone who has purchased a propery registered with Homebond -particularally those covered by the original non underwritten Scheme, may be interested in the following two papers:

[broken link removed]


[broken link removed]
 
Last edited:
Back
Top