Bust developers road bond cashed in to finish roads

Home owners who purchased new build properties in the Lindara estate in Larne have been assured that the road bond lodged by the developer, who has since gone bust, will be used to finish roads and footpaths at the development.

It is a familiar site around different developments in Northern Ireland - houses completed and owners moved in, but the roads accessing their properties resemble a construction zone because the developer has gone bust and stopped working to finish off the development. Thankfully, a road bond is required from builders before construction of a development and acts as a guarantee that they won't disappear once the last house has been sold without finishing off the roads, footpaths, street lighting etc. The builder puts up money as security and that money can be used by the DOE to finish off the roads in the event that the developer does not do so.

Regional Development Minister Danny Kennedy has confirmed that the £500,000 road bond put in place by house builder Eassada, who went into administration in 2009, will be used to finish off the public areas of the Lindara estate. Mr Kennedy called road bonds "a vital requirement within a development contract" that acts as a "safeguard [of] the public purse." He confirmed that residents at the Lindara estate, who have had to put up with the unfinished dirt roads, will soon see Roads Service and NI Water "complete the very significant amount of work required in the estate."

While home owners in the development have been greatly inconvenienced, they are among the fortunate new-build property buyers who are protected by a road bond. Many other house purchasers have not been so lucky and face a protracted and very expensive process to try to get the roads in their development finished. Your conveyancing solicitor should advise you of the presence of a Road Bond when you are purchasing a new build property and you may have a case against them for negligence if they did not advise you of the absence of a road bond before completion.

If you are buying a new build house and require a property solicitor in Northern Ireland to handle the conveyancing process for you, contact Wilson Nesbitt by calling 0800 840 9290.

Or if you require legal advice in respect of bringing a claim against a solicitor or other professional for negligence, contact one of the litigation solicitors at Wilson Nesbitt by calling 0800 840 9295.