buying new house - no homebond

E

EAMONN66

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im buying a new house that was built by someone who had a bit of land and saw an opportunity to make some money. as they werent proper bulders the house is not homebonded. this is not a problem for me as i know the house is properly built, however the bank are looking for it or at the minimum some form of structural indemnity which i can fully understand.

the "builder" is not very well informed and does not want to give this guarantee, probebly on the advice of his solicitor who actually asked my solicitor "why do you need one of those" . the same solicitor took 3.5 months just to issue initial contracts
did anyone else ever come up against this kind of issue or have any advice.
 
New houses are sold all the time that dont have homebond. The builder normally then gives a structural defects indemnity...however it is not hugely important as you have rights in common law against the builder if something goes wrong whether or not an indemnity is given. Really the bank shouldnt insist on it being given because of this and also I assume you will have a structural survey done by an engineer with professional indemnity insurance in any case which you can also rely on- and which will still be there when your builder may have liquidated his company.
 
my husband built houses for many years but did not have a homebond he always gave a 6 year guarantee when selling never had any problems
 
thanks for the replies. i wish my builder was an aam'er
 
Re: buying new house - no homebond/no big deal

By the way Eamon, and anyone else please correct me if I'm wrong, Homebond only cover major structural failures in the building. I understand that if the building is on a raft foundation it is excluded from cover and is covered by the engineer's insurance provider.
 
Re: buying new house - no homebond/no big deal

Homebond covers structural defects and water ingress, strictly - with LOADS of conditions attached.

The options for the builder are

(a) To enter a defects liability the bank for an agreed number of years
(b) To engage the services of a reputable Structural Engineer who will Certify the Compliance of the building with Structural/Building Regulations and the Planning Permission. This would be attached to your deeds. Normally, the bank will accept this.
(c) There is another company other than Homebond (can't for the life of me remember the name, try google) who do cover once off country houses. See if they can help you out

HTH
 
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