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Half built development - what happens to planning deposit?

  • 28-03-2013 12:08pm
    #1
    makeorbrake
    Registered Users, Registered Users 2 Posts: 4,666 ✭✭✭


    If a small development is largely constructed (i.e. structure is up and it's watertight) - and at that point it's sold, what happens as regards the bond that was lodged with the council?


    In the case I'm thinking of, 20K would have been lodged. Planning would have ran out 2 years ago - albeit that the majority (but certainly not all) of the work has been carried out.


    What is the status of the bond in this case? Would it have already been seized? Would the original developer get it back - OR - if sold at this point, would the new owner eventually get this deposit back?

    Is there much cause for concern that the planning has run out despite the fact that structure of the building has been constructed? Is it just a matter of form that it would be extended - or is there even a need for whomever finishes off the development to officially get that extended?


Comments

  • #2
    sydthebeat
    Subscribers Posts: 42,171 ✭✭✭✭sydthebeat


    if the development is unfinished then, in all likelihood, the builder is bust therefore the bond is retained.

    if planning has expired, new planning is required to retain and complete.


  • #3
    makeorbrake
    Registered Users, Registered Users 2 Posts: 4,666 ✭✭✭makeorbrake


    Hi syd. Thanks for your post.
    sydthebeat wrote: »
    if the development is unfinished then, in all likelihood, the builder is bust therefore the bond is retained.
    Something that I've yet to clarify but if technically the builder isn't officially bust (that's what i've been led to believe)and sells that development whilst planning has expired, will the bond be retained by virtue of the fact that the original developer is exiting mid-development and/or as retention will be sought by a third party - in order to complete the development?


  • #4
    sydthebeat
    Subscribers Posts: 42,171 ✭✭✭✭sydthebeat


    This all depends on the legal wording of the bond and what its covers.
    I would think that if the development is not completed within the planning time, the bond would be lost, but i cant be certain on that.


  • #5
    makeorbrake
    Registered Users, Registered Users 2 Posts: 4,666 ✭✭✭makeorbrake


    sydthebeat wrote: »
    This all depends on the legal wording of the bond and what its covers.
    Wording as follows;


    "Before development commences, the developer shall lodge [with the Council] a cash deposit of €20,000 as security for the provision and satisfactory completion of roads, footpaths, sanitary services, open spaces and other services required for the development coupled with an agreement empowering the Council to apply such security or part thereof for the satisfactory completion as aforesaid, of any part of the development."

    sydthebeat wrote: »
    I would think that if the development is not completed within the planning time, the bond would be lost, but i cant be certain on that.
    hmm....i wonder if retention is sought by a new owner/developer, what the status is with the bond. I guess the retention will relate to the original planning consent - which relates to the bond.
    I guess either the bond transfers across to the new developer or else it's retained by the Council. Anyone else have any opinions on this?


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