New Build Conveyancing Made Simple

Nationwide defines a ‘New Build’ property as that which has been built. Converted or refurbished within the last two years. This also extends to properties bough off-plan and those that have been occupied or rented whilst in the ownership of the builder or developer.

When purchasing a new build you will have to commit to the purchase of the property before the building work has concluded, hence the difference between buying a pre-existing home. There are many different timelines of buying a new-build property, you can purchase these before the construction has started or also during. It is fairly common to commit to purchasing a property for which you have only seen computer designs for.

The conveyancing process differs slightly, luckily, we have listed all the steps below to make it as easy as possible for you:

Step 1 – The buyer places a non-refundable reservation fee which can vary in amounts but is typically between £500-£2000. This will be deducted from the purchase price on completion/

Step 2 – The purchaser will instruct their conveyancing solicitor to commence the transaction.

Step 3 – Your solicitor will request an up-front fee to purchase searches from a third party provider. These will confirm details from the local authority and also ensure there are no issues concerning water or drainage. Please see our detailed article regarding searches.

Step 4 – Your solicitor will then carry out any new build conveyancing checks and raise any enquiries they may see fit which the vendor’s solicitor will then respond to. The solicitor will have to thoroughly review any title documents, planning permission, building control and any other warranty which may be necessary. This has to be typically done within 28 days and is often more complicated than a usual transaction.

Step 5 – The purchaser then pays a deposit to their solicitor which is usually 10%. A 5% deposit is also accepted if you are using funds from the Government’s Help to Buy scheme. Many developers are registered with a warranty which can protect your deposit from incurring any penalties should you withdraw from the sale due to delays deemed unreasonable.

Step 6 – Contracts are exchanged. his has to be typically done within 28 days of commencing the transaction. However, please double check with your solicitor.

Step 7 – Completion. This is the day the full balance of funds passes to the vendor’s solicitors and also when keys will be released to you. A fixed completion date is not always given, usually the developer will provide written notice when the property has been structurally complete and for completion to occur within a set period, this is normally ten days to allow you to request funds. However, this varies with each property.

What should I look for?

When purchasing a new build property, it is important to be on the lookout for:

• Ensuring your mortgage offer remains valid up until completion.

• Delays outside of anyone’s control. This can extend to issues with property such as a shortage of materials but also to weather conditions delaying the build.

• What is covered by the National House Building Council (NHBC). A ten year guarantee is offered but can also be provided by other reputable organisations such as Buildzone and Premier Guarantee amongst others.

• Enquiring into whether your developer is registered with a warranty provider which will protect your deposit.

• Any difficulties with non-compliance of any planning regulations enforced.

Our conveyancing services are offered nationally. Please contact us for further assistance.