Question:
Two years ago I purchased a property (plot and plan) in a development. Up until now the developer has not fully completed the unit citing financial constraints and bad investment decisions.

The other investors and I had a meeting with him where he committed to finishing the project.

He has since returned to site, but is tackling units which are profitable to complete as our bonds has reached their limit.

What are my options? Should I finish the unit myself? Am I still legally contracted to him if I do this? Will the bank assist me with my problem?

Answer:
The issue that concerns me is the fact that you may have paid him the entire amount for the construction of the property. This should never happen, because the bank should withhold final payment until they have a letter from you indicating that all the work has been completed to your satisfaction. If he has been paid all the money you have very little leverage.

You should definitely get the bank involved to put pressure on him.

If, however, there are funds available that the bank has not yet paid over then you could investigate using another contractor. Do not do this before you get an agreement, in writing, from the current developer to say that he has been paid in full for the work done. Do not get the work completed by someone else unless an agreement has been drawn up. You must use an attorney to do this.

In addition, he may have cut corners if he is financially compromised so get an inspector in to ensure that everything is up to code. You can contact the Master Builders Association (MBA) to help you do this.

If you use another contractor and he does shoddy work he could blame it on the previous builder. An MBA report is therefore critical. It will cost about R1800, but it will be well worth it for peace of mind.

If there are other people in your situation, and he has all the money, it would be a good idea for you to enlist the help of a lawyer and to issue with him a letter demanding a completion date.