homebond problem with new development

S

sickwithwory

Guest
Major problem,

Just about to close on house purchase and discovered that builder does not have homebond. The development of 150+ houses is advertised as having homebond and in fact the homebond documents were included in the original contract pack which I signed and paid deposit on. I spoke to homebond today and find out that there is no cover for either this builder or site.

What options do I have? If I pull out of sale now do I get deposit back - after all the builder and builders solicitor lied to me?

Please any help I think im going to pass out!
 
If the homebond package, guarantee agreement, HB 47 and HB 10 were sent with the original contracts, then the builder was in the past registered with homebond. The question is why he is not now and what has happened. Is it that the HB 11 ( final guarantee) simply has not yet issued, or is it that it will not issue due to some problem in either the structure or the inspection of same?
 
I quite sure there is no need to worry in this instance, you have strong legal protections where the builder cannot furnish Homebond gurantee, as stipulated in the original sales contract. Your own solicitor must advise on the next course of action.
 
Thanks - ive just learned this situation today and have only just advised solicitor (as with all things I had to do research myself - solicitors are all but useless) There was some mention of a HB47 when i signed contrat but I do not know what this is (Vanilla) can you clarify please. My solicitor is/ was a friend (not sure yet) I should have gone to someone i didn't know. This is a nightmare!
 
Hi Sick - This may well be stating the obvious, but you absolutely need to put your friendship with your solicitor to one side. Assuming that your solicitor takes a professional attitude to their work, they will do the same. Make your requirements very clear to your solicitor and chase, chase, chase to get what you need - This is probably the biggest purchase you will ever make, and you can't afford to cut any corners in the interests of your friendship.
 
If in any doubt put your queries/ concerns to the solicitor in writing and request a detailed written reply.
 
The initial documents that are issued for each house in a development where the builder is registered with homebond are the HB47 ( which is a document which goes to your lending institution to prove Homebond protection), the HB10 ( which is the initial limited guarantee) and the agreement. The Law Society recommendation is that the originals must be furnished with or before contracts, and the agreement signed by the purchaser on signing contracts and your solicitor should then receive the contracts and agreement back signed by the developer.If these documents issued with or before contracts, then your solicitor would have no reason to have any concern that the property was not covered by homebond. On closing however the HB11 ( the final guarantee) must be given, and if not, your solicitor should not close without receipt of it ( again Law Society recommendations). Therefore if you are only just about to close, then your solicitor would have no reason for concern unless informed there was a doubt that the HB11 would issue. I am curious as to why you yourself had some doubt that the property was homebonded to the extent that you rang up about it- what triggered your concerns?

Proviso in relation to the above, I am just another 'useless solicitor' so you really should take what I say with a grain of salt.:rolleyes:
 
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