Is a BG obligatory only for ‘large developments’?

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    • #52112
      Anonymous
      Participant

      Does the law obliging developers of off-plan developments to issue, free of charge, a Bank Guarantee to each purchaser, also apply to builders of individual houses?

      A lawyer is telling someone I know that the builder of their (individual) house is not obliged to supply a Bank Guarantee without it costing them
      ‘a lot’. And has never offered/supplied a Bank Guarantee.

      A reply from anyone ‘in the know’ would be appreciated !

      Barbara

    • #64575
      Anonymous
      Participant

      BGs are obligatory by law. Any related costs are paid by the developers.

      If they do not give a BG or ask you to pay for it, walk away!! 😉

      Katerina

    • #64579
      Anonymous
      Participant

      Katerina is right. You are entitled to a BG, at no cost to you, regardless of the size of the developer.

      Mark

    • #64581
      Anonymous
      Participant

      Thank you Mark.
      K and I ‘begged to differ’ on this one.

      As usual, she was right then 🙁

      Barbara

    • #64588
      Melosine
      Participant

      For Charlie.
      I have replied by PM but it is stuck in outbox at the moment !!!!!!.
      Will investigate . Give me a couple of days
      Cheers
      Melosine

      PS sorry I have interrupted thread.

    • #64589
      Anonymous
      Participant

      Pm’s stay in the outbox until recipient opens it.

    • #64590
      Anonymous
      Participant

      Surely, if you engage a builder to construct your property, then the builder is not liable, under law, to guarantee your stage payments? Would you not be classed as the developer?

      A

    • #64847
      Anonymous
      Participant

      @charlie wrote:

      Does the law obliging developers of off-plan developments to issue, free of charge, a Bank Guarantee to each purchaser, also apply to builders of individual houses?

      A lawyer is telling someone I know that the builder of their (individual) house is not obliged to supply a Bank Guarantee without it costing them
      ‘a lot’. And has never offered/supplied a Bank Guarantee.

      A reply from anyone ‘in the know’ would be appreciated !

      Barbara

      The answer is obvious, If you are building your own house hiring a constructor, you are the developer. Obviously Law 57/68 doesn’t apply to you, so no BGs for you.

    • #64663
      Anonymous
      Participant

      @charlie wrote:

      Does the law obliging developers of off-plan developments to issue, free of charge, a Bank Guarantee to each purchaser, also apply to builders of individual houses?

      A lawyer is telling someone I know that the builder of their (individual) house is not obliged to supply a Bank Guarantee without it costing them
      ‘a lot’. And has never offered/supplied a Bank Guarantee.

      A reply from anyone ‘in the know’ would be appreciated !

      Barbara

      The answer is obvious, If you are building your own house hiring a constructor, you are the developer. Obviously Law 57/68 doesn’t apply to you, so no BGs for you.

    • #64853
      Melosine
      Participant

      Barbara & Katerina

      Am only posting this so others are aware. My PM to Barbara,on another issue,did highlight this query.

      Unlike developements an individual build is constructed on land owned by the new future homeowner.
      If the person doesn’t have the title deeds to the land it is only individual in design. And therefore must have a BG.
      On a true individual build one has total imput in the plans and who is going to build it. They are also on named on all documents as the promotor. Consequently BG’s are not in the equation because should anything happen the owner/promotor has total rights the the build and can reside there when they think fit regardless of any money or work outstanding.
      Although in stage payments money is never passed over until the agreed work has been completed to satisfaction of client.

      What one does,as a promotor, is buy a one off insurance premium to cover a 10 year period just in case builder or architect dies, goes bankrupt or simply AWOL.

      Law and situation regarding this is the same as in England.

      Hope you can now agree.
      Cheers

    • #64666
      Melosine
      Participant

      Barbara & Katerina

      Am only posting this so others are aware. My PM to Barbara,on another issue,did highlight this query.

      Unlike developements an individual build is constructed on land owned by the new future homeowner.
      If the person doesn’t have the title deeds to the land it is only individual in design. And therefore must have a BG.
      On a true individual build one has total imput in the plans and who is going to build it. They are also on named on all documents as the promotor. Consequently BG’s are not in the equation because should anything happen the owner/promotor has total rights the the build and can reside there when they think fit regardless of any money or work outstanding.
      Although in stage payments money is never passed over until the agreed work has been completed to satisfaction of client.

      What one does,as a promotor, is buy a one off insurance premium to cover a 10 year period just in case builder or architect dies, goes bankrupt or simply AWOL.

      Law and situation regarding this is the same as in England.

      Hope you can now agree.
      Cheers

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