Stage Payment - higher than value

D

dubinamerica

Guest
Hi - in the process of purchasing a property and have paid the 10% deposit, of 14,500. Now as per contracts there is a stage payment of 50K. Valuation has just taken place and the 'house' is worth 30,000 at the moment.

I'm concerned about making this stage payment right now - HomeBond *should* I think cover us for 21,750 (15% of purches price 145,000) and the 'house' is worth 30,000 right now .. If the builder was to go bankrupt we'd have paid him out 64,500 so more than the value and coverage ..

Any idea if there's some extra insurance against this type of thing ? We're taking out buildings insurance but that won't cover the possibility of builder absconding/ going bankrupt etc and us being left with a 12K gaping hole .. Any ideas ?? Thanks !
 
at what point does ownership of the site passto you. it it is after the 50k then at least you have a bit of extra security.
 
Not sure how that would work .. we're buying in an estate but there's an agreement for the site and one for the property .. I'll look at the contract again and ask my solicitor as well.. Thanks for the pointer :)
 
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