Buying a New build: Could I lose contract deposit amount?

mustang01

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Buying a house off-plan and the Homebond thing looks grand on the surface, except seems like it only covers €30k of a deposit when mine would be 3 times that. So am I banjaxed if the developer goes bust?
 
They cover deposits up to 10% of the contract price up to €50k (subject to reduction in the event of total claims to one developer exceeding €1,000,000)

Are you really proposing to hand over €90k as a booking deposit up front? Any chance you are confusing the term 'deposit' with the non-mortgage element of the final price?
 
They cover deposits up to 10% of the contract price up to €50k (subject to reduction in the event of total claims to one developer exceeding €1,000,000)

Are you really proposing to hand over €90k as a booking deposit up front? Any chance you are confusing the term 'deposit' with the non-mortgage element of the final price?
The house price is 950k so contract deposit is 95k, minus booking deposit which was 9k.
 
IANAL...

When we purchased a new build from plans, our solicitor insisted and had the clause added to our contract that the funds were held in escrow by the vendors solicitors.

i.e. proof of funds was provided and if anything went wrong on the builders side we would not have lost out.
 
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IANAL...

When we purchased a new build from plans, our solicitor insisted and had the clause added to our contract that the funds were held in escrow by the vendors solicitors.

i.e. proof of funds was provided and if anything went wrong on the builders side we would not have lost out.
Good to know, thanks. My solicitor seems to think that builder’s Homebond cert is enough but I’m not happy given the sums involved so will enquire about putting in such a clause. Any pushback from the developers on putting it in?
 
Any pushback from the developers on putting it in?
None, it seemed like a normal request from our solicitor and was not even questioned by the vendors solicitors. From our perspective it appeared to be standard enough practice.

Obviously the same conditions applied regarding our obligations, as in we couldn't pull out of the deal. But it gave an extra layer of protection to our deposit that it wasn't going to disappear if the developer went bust.
 
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