Purchasing a brand-new home is a dream come true for many people, however, newly built properties often involve a more complicated conveyancing process. These intricacies are why it is important to consider the assistance of an experienced conveyancing solicitor to help complete your purchase.
What is New Build Conveyancing?
New build conveyancing is what formally transfers ownership of a newly constructed property from the seller (usually a developer), to the buyer. It varies to that of an existing home as buyers are often committing to purchasing a property’s plot, or an incomplete building. This can place additional risks on the purchase as there is potential for unexpected issues to arise during, or after the build.
Potential complications include (but are not limited to):
- Non-compliance with specific planning regulations
- NHBC inspections not being performed
- Incomplete agreements for surrounding areas
By employing the expertise of an experienced conveyancing solicitor, you can rest assured that should any issues arise, they are dealt with promptly and professionally, and you are informed at every stage of the process.
What is The Process of New Build Conveyancing?
Securing the property is the first step. When you make an offer to purchase a new construction, you typically have to pay a reservation fee to the developer. For a predetermined amount of time, often 28 days, this safeguards your ability to proceed with the purchase and keeps the developer from agreeing to sell your plot to another buyer. You may also have the option to back out of the purchase within this time frame however some reservations are non-refundable. As with any home purchase, you will need to ensure that once an offer has been accepted, you secure a mortgage or the necessary funds to complete the purchase.
You will need to complete a reservation form provided by the new build’s developer, and this will specify the required reservation fee (this is not a deposit). This paperwork establishes an agreement between the builder and buyer, and amongst other details, will include an exchange deadline. It is important to note that you will need to instruct your chosen solicitor by this date, otherwise you run the risk of forfeiting both the property and reservation fee.
Once appointed, your new build conveyancer will start the process of securing the purchase and ensuring you are informed of any issues, should they arise. Typically, they will need to perform the following to complete the process:
- Verify approvals for planning permissions and building regulations.
- Make sure the property has drainage, water, power, and gas available.
- Look for agreements that limit your freedom to use and enjoy the property.
- Check to see if the property is freehold or leasehold.
- Perform searches using local authorities.
- Examine your official mortgage offer’s terms.
Once all necessary research is undertaken and any additional snagging surveys are complete, the next step is to exchange contracts with the developer’s solicitor. During exchange, you will need to sign a contract that binds you to buy the home at the asking price listed, and to settle the remaining sum upon completion. A deposit for the home will also be required at this stage (typically around 10% of the agreed purchase price).
A completion date will then be set and moving preparations can begin. It’s important to note that with new build properties, the completion date may be weeks or even months after exchange. This is to ensure there is enough time for the developers to complete the building works and fix any outstanding issues.
Following completion, you will be able to pick up the keys from the site office once the remaining balance is transferred and confirmed.
How Long Does Conveyancing Take on a New Build?
Similar to second-hand homes, the timeline of purchasing a new build can fluctuate depending on various factors. Nonetheless, as previously mentioned, the exchange of contracts typically must occur within 28 days, or you risk losing your reservation fee. Therefore, it is crucial to engage a qualified conveyancer to ensure the purchase is completed promptly.
How Can Merriman Solicitors Help?
At Merriman Solicitors, we are dedicated to making your new build home purchase as smooth and stress-free as possible. Our experienced team will ensure that all aspects of the development meet the necessary standards, and that you are informed at every stage of the process. We will engage with the developer to discuss all aspects of the build, so you can rest assured that you are purchasing a home that is fit for purpose and meets all legal requirements.
We are committed to ensuring all our clients receive exceptional service from start to finish, and any questions you may have during the process are dealt with effectively. For more information about our new build conveyancing services, please get in contact with us.
