Third Party Guarantee
No matter how much homework you’ve done, building a home carries a level of exposure that, while it can be managed and mitigated, it can’t be completely eliminated.
For example, we never know for sure what could go wrong until it does. And you are paying for something in advance for a home you have seen only on paper.
In most instances you will be required to secure through your builder a third party guarantee. A third party guarantee is simply a guarantee offered through an independent body or insurer.
Registered Master Builders Federation* and Certified Builders Association both offer a comprehensive guarantee (Builtin who administer the CB guarantee for it's members also offer it to other qualified builders that may not be listed on their website). You need to view their websites for additional cover information.
Summary of benefits:
- Loss of deposit (up to certain limits) should your builder not be able start your project once you have paid your deposit
- Non completion (getting a new builder in to finish the project)
- Structural defects (workmanship and materials) after completion of your home for a number of years
- Both have mechanisms to manage dispute resolution
Your loan offer may require you to ensure your builder can provide this guarantee. You also need to ensure your guarantee is in place BEFORE you pay the unconditional deposit to your builder to ensure your deposit is protected.
When you have only an equity deposit (your deposit is in the value of the land) and where NewBuild will be making a deposit payment on your behalf, we will only make that payment once your guarantee is in force.
Click on logo's for further details>>>
Master Builder Brochure.pdf Homefirst A4 Brochure.pdf