Solicitors for Buying a New Build
Legal Advice for Buying a New Build Property
There are many benefits to buying a newly built property.
It is a blank canvas that allows you to put your own stamp on your home, depending on what stage you agree to purchase your property you may be given the opportunity to tailor the property to your requirements, for example, the kitchen and bathroom designs and flooring.
Some developers subscribe to schemes such as help to buy and shared ownership without which you might not be able to get onto the property ladder.
One of the biggest positives for most homebuyers is the ten-year construction warranty that comes with purchasing a new-build property.
Whilst this is an exciting time, the team at Home Property Law understands it can also be overwhelming and our team of experts will walk you through the process every step of the way, making it as straightforward and stress-free as possible.
How Does Conveyancing for New Builds Work?
As a buyer of a new build, you will often have to commit to your purchase before the building work is completed.
For this reason, the new build conveyancing process is often a little more complex than buying an older home.
You may be buying a property before construction has commenced or while it is being built, so you’re effectively purchasing your new home based on what you’ve seen in the show home or a computer-generated set of drawings.
The Conveyancing Process for New Builds Step by Step
Step 1: Buyer Reserves the Property
Once you’ve found the home you want buy, you’ll likely have to put down a reservation fee of between £500 and £2000. This isn’t usually returnable but will come off the purchase price when you reach completion.
Step 2: Buyer Instructs a Conveyancing Solicitor
As soon as you have an offer accepted on a new build home, you will need to instruct a conveyancing solicitor immediately, as well as getting your mortgage in place. Deadlines can sometimes be extended, however your reservation fee may be at risk if you do not meet the exchange deadline set by the developer.
Step 3: New Build Conveyancing Checks Are Carried Out
Your conveyancing solicitor will thoroughly check the title documentation, planning permissions, building control and any warranty of the property - which is often more complicated than normal transactions. As your conveyancing solicitor may need clarification to thoroughly check the contracts, it is important that you are in a position to answer any queries as quickly as possible. This is usually a quick and intensive process with only 28 days to exchange contracts.
Step 4: Buyer Pays the Deposit
You will pay a 10% deposit to your conveyancing solicitor who will transfer this to the seller’s solicitor, unless you are buying with the Government’s Help to Buy scheme, where the deposit is 5%. It would be advantageous to go with a developer that is registered with a warranty provider as this will protect your 10% deposit should the developer have financial difficulties and find themselves unable to complete the build.
Step 5: Exchange of Contracts
Once you’ve reserved your new home, you’ll typically have four weeks to exchange contracts. If you don’t exchange in this time, be aware that the builder can withdraw any incentives that were offered when the purchase was agreed and in the worst case scenario pull out of your deal, meaning you lose both your reservation fee and the house. If the development you’re buying into is popular and there is a lot of competition, builders can be particularly ruthless when it comes to meeting deadlines.
Step 6: Between Exchange and Completion
Typically your solicitor will not receive regular updates as to the build progress, any enquiries should be directed to the site office or agent that you purchased through. Once the property is build complete the developer’s solicitor will serve notice to confirm the property is ready for occupation and you will have 5-10 working days to complete the purchase. If the period between exchange and completion is greater than 6 months it is important to ensure your mortgage offer remains valid, either through an extension of your existing mortgage or a new offer.
Step 7: Completion
The day when the sale is finalised and the property is legally transferred to you is known as completion day. This is the date when your conveyancer will transfer the funds provided to the seller’s lawyer and you will be given the keys for the property. It is important you thoroughly inspect the property for any items that may require repair and any appliances to ensure they are in good working order. The contract will provide for these items, known as snagging items, to be rectified and repaired within a set period of time following completion.
Reach Out to Our Expert Buying A New Build Team
Our conveyancers help individuals, couples and families buy their new homes every day.
We’re with you every step of the way, from pre-contract right through to land registry and completion and it’s our job to make the whole process as smooth and stress-free as possible. We’ve supported our clients in buying a wide range of properties – from rural, urban, leasehold, freehold and new builds to listed properties.
We have also built excellent relationships with industry contacts, such as:
- Surveyors
- Estate agents
- Brokers
- Accountants
- Mortgage lenders
- Search provider
- Other solicitors
No matter the stage of your buying journey, we can help. Get in touch with one of our experts today by calling us on 0333 433 0275 or send us an email at hello@homepropertylaw.co.uk.
