Vol. 505 No. 3
207 Mr. Dennehy asked the Minister for the Environment and Local Government if he will bring forward legislation to outlaw the practice of house builders requiring staged payments from purchasers as this necessitates purchasers drawing down their mortgage prior to completion of their home and represents a hidden increase in the cost of home purchase; and if he will make a statement on the matter. [13673/99]
I consider that stage payments in excess of the amounts covered by the HomeBond stage payment warranty expose the house purchaser to an unacceptable degree of risk. I have placed on record my concerns regarding the level of stage payments set out in the Irish Home Builders' Association code of practice in cases where title to the site is transferred before completion of the transaction. I have also written to the association seeking assurances that members neither seek interim payments in excess of the HomeBond warranty nor seek to extend the practice of stage payments to areas where they did not previously operate. These assurances have not yet been forthcoming.
I have also noted the recent judgment of the District Court in Cork that the stage payments sought in the case in question were unfair. The stage payments sought in this case appear to be the level set out in the IHBA code where title to the site is transferred before completion of the transaction. I would now expect the Irish Home Builder's Association to withdraw the stage payments element of the code of practice. I will be in touch with it in this regard. My Department will also be in touch with the Director of Consumer Affairs on this issue. I would not rule out the prospect of legislation in this area if that proves necessary.
