I bought a new-build plot on a small development in West Wales two years ago. The development is served by a private road which the builders advised would be taken over and adopted by the Local Authority in due course. What is my position?
The responsibility for the maintenance and upkeep of a development road during the construction of the development remains with the developer. The danger is that in the course of development the developer could be made bankrupt, or wound up if a Limited Company.
In such circumstances the road would remain private and the responsibility for maintaining and repairing the same would pass to the individual plot owners – unless the developer had entered into a Section 38 Adoption Agreement under the Highways Act with the Local Authority, in which case the plot owners are protected and the Local Authority will take over the road once the development is completed and the road brought up to the required adoption standard.
In the meantime, the builder remains liable for its maintenance and these agreements are usually supported by a bond entered into with a bank, or insurance company, who guarantee the obligations of the builder should he go into liquidation during the course of the development.