Assumption Grading Deposit FAQ's

Grading Deposit

A Grading Deposit is a deposit that is made to the developer and/or builder by the homeowner to ensure the grade will not be altered or items installed that will prevent the develop and/or builder from obtaining certification (i.e. pools, rock gardens, decks, etc.). The average waiting time to have your lot certified could be 3 years.

"Why does it take so long?"

A number of items need to be completed before the developer and/or builder can get your lot certified, such as municipal curbs and sidewalks, driveways, sod, etc.

Certifications & Restrictions

To be certified, the developers consulting engineer inspects the lot and checks to see if the grading is completed in accordance with the approved grading plans. Once certification is completed, you may qualify to have your deposit returned, or you may have to wait until the subdivision is assumed.

Assumption

This is when the municipality assumes responsibility for all roads, sidewalks, grading, water and sewer services.

Driveway Paving

All driveways in a subdivision are usually paved with 2 coats of asphalt. This work is done by the developer and/or builder, and cannot be altered or substituted (i.e. widening the driveway or installing interlock) from what is shown on the approved grading plans.

Background: Some builders require "lot grading deposits" to prevent homeowners from making unauthorized changes to lot grading before the final lot grading has been approved. The town does not require builders to take lot grading deposits and has no control over the conditions of their release. New home purchasers should review their purchase and sale agreement to confirm whether a lot grading deposit is required and what the conditions of release are.

The Town of Newmarket holds letters of credit from the developer to ensure that all works are completed in accordance with town standards and specifications. The town does not hold grading or driveway deposits from the homeowners or the builders. The homeowner should check the purchase agreement to see who has the grading deposit and when it will be returned.