Understanding Road and Sewer Bonds in Northern Ireland’s New-Build Developments

At O’Reilly Stewart Solicitors, we regularly advise clients on the legal complexities associated with purchasing new-build properties across Northern Ireland. A pressing issue facing buyers today involves unadopted roads and sewers in New Build developments.
Recent figures from BBC News NI indicate that there are more than 1,800 unadopted developments throughout the region. These are developments where the roads and sewer systems have not been completed to a standard that enables public authorities, such as the Department for Infrastructure (DfI) Roads or Northern Ireland Water, to adopt and maintain them.
To protect homeowners, developers are typically required to secure a road and sewer bond. This is a financial guarantee, usually in the form of a surety or cash deposit, meant to cover the cost of completing infrastructure works should the developer fail to meet the required standards.
Our role as solicitors is to ensure that this bond is in place and that it provides adequate coverage before a property purchase proceeds. Without a valid and sufficient bond, homeowners may be left with unadopted and potentially deteriorating infrastructure, especially if the developer becomes insolvent or ceases trading.
Unfortunately, the bond value can be insufficient to fund necessary remedial works. When this happens, homeowners can face significant challenges, including the inability to sell.
Lenders are also increasingly cautious about financing properties in developments that have not been formally adopted. As part of our due diligence, we assess the adoption status and the adequacy of the bond, advising our clients accordingly. In some cases, we may recommend not proceeding with the purchase due to the risks involved.
For buyers, the key takeaway is this: do not overlook the importance of obtaining detailed legal advice before committing to a property purchase. At O’Reilly Stewart Solicitors, we are committed to safeguarding your investment by identifying potential risks early and guiding you through every step of the conveyancing process.
If you have questions about road and sewer bonds, or any aspect of purchasing a new-build property, please get in touch with our team today.