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Builder bond on unfinished estate

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  • 19-04-2012 11:50am
    #1
    harry1
    Registered Users Posts: 28 ✭


    Hi,

    If the builder/developer of an unfinished housing estate goes into liquidation, then what happens to the bond?

    Will this be used to pay all debts first? I.e. creditors who are owed money?
    In other words is it considered an asset of the company?

    Or can this be drawn down by the council to carry out required works in order to make the estate safe for existing residents?


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    #2
    Victor
    Registered Users Posts: 78,402 ✭✭✭✭Victor


    It is an asset of the council until such time as the work is discharged, regardless of who does the work or whether it was paid in cash or done as a guarantee from a third party.

    There may be difficulties regarding the assets the bond is secured on, making it difficult for the insurer / bondsman / council to pay.

    Any party with a material interest would be well advised to contact a solicitor who is familiar with the issues.


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