Buying a new build property can be an exciting and rewarding experience, but it also comes with some unique challenges and complexities. That's why it's important to have a specialist new build conveyancer / solicitor on your side, who can guide you through the process and protect your interests.
In this article, Richard Thornton, New Build Conveyancing specialist at Howells Solicitors, will explain what new build conveyancing is, how it differs from buying an existing property, and what steps you need to take to complete your purchase successfully.
What is New Build Conveyancing?
New build conveyancing is the legal process of transferring the ownership of a newly built property from the developer to the buyer. It involves checking the title deeds, contracts, planning permissions, warranties, and other documents related to the property, as well as conducting searches and inspections to ensure there are no issues or defects.
New build conveyancing also involves liaising with the developer, the mortgage lender, and other parties involved in the transaction, such as surveyors and local authorities. The conveyancer will also handle the exchange of contracts, the payment of deposits and fees, and the completion of the purchase.
How is New Build Conveyancing Different from Buying an Existing Property?
New build conveyancing has some key differences from buying an existing property, such as:
- The timescales are often shorter and more uncertain. Developers usually require buyers to exchange contracts within 28 days of reserving a plot, and to complete within 10 working days of receiving notice that the property is ready. However, there may be delays or changes in the construction schedule that affect the completion date.
- The contracts are often more complex and one-sided. Developers usually use their own standard contracts, which may contain clauses that favour them over the buyer, such as reservation fees, long-stop dates, retention clauses, and restrictive covenants. Buyers should always seek legal advice before signing any contract.
- The property may not be finished or inspected at the time of exchange. Buyers may have to rely on plans, specifications, and show homes to get an idea of what the property will look like when completed. They may also have to accept a certificate of practical completion from the developer instead of a full building regulation certificate from the local authority.
- The property may have defects or snags that need to be fixed after completion. Buyers should inspect the property thoroughly before moving in and report any issues to the developer as soon as possible. They should also check that they have a 10-year warranty from a reputable provider, such as NHBC or LABC, which covers any major structural defects.
What Steps Do You Need to Take for New Build Conveyancing?
If you are buying a new build property, you will need to take the following steps:
- Find a specialist new build licensed conveyancer / solicitor who has experience in dealing with developers and their contracts. You can get a free conveyancing quote by getting in touch with Howells Solicitors.
- Reserve your plot with the developer and pay a reservation fee, which is usually between £500 and £1,000. This fee is usually non-refundable if you change your mind or fail to exchange contracts within the agreed timeframe.
- Apply for a mortgage and get a mortgage offer from your lender. You will need to provide details of the property, such as the price, size, location, and expected completion date. You will also need to provide evidence of your income, outgoings, deposit, and credit history.
- Instruct your conveyancer to start the legal work on your behalf. They will review the contract and title deeds, conduct searches and enquiries, advise you on any issues or risks, and negotiate any amendments or additions with the developer.
- Exchange contracts with the developer and pay a deposit, which is usually 10% of the purchase price. This is when you become legally bound to buy the property and cannot pull out without losing your deposit and facing legal action.
- Wait for notice of completion from the developer. This is when they inform you that the property is ready for occupation and that you have a fixed period (usually 10 working days) to complete the purchase.
- Complete the purchase and move into your new home. Your conveyancer will transfer the remaining balance of the purchase price to the developer's solicitor, arrange the payment of any Stamp Duty Land Tax (SDLT) or in Wales, Land Transaction Tax (LTT) register your ownership with the Land Registry, and send you the documents.
How Can Howells Solicitors Help You with New Build Conveyancing?
At Howells Solicitors, we have a dedicated team of new build conveyancing specialists who can help you buy your dream home with confidence and ease. We offer:
- A fixed fee service with no hidden costs or surprises
- A fast and efficient service with regular updates and communication
- A personal and friendly service with a dedicated conveyancing expert who will handle your case from start to finish
- A wealth of experience and expertise in dealing with new build properties and developers
- A free initial consultation and a free conveyancing quote
If you are interested in buying a new build property and need a reliable and professional new build conveyancing specialist, contact Howells Solicitors today. We'll be happy to answer any questions you may have and provide you with a free conveyancing quote. You can call us on 02920 404020, email us at info@howellslegal.com, or fill out our online form. We look forward to hearing from you and helping you with your new build conveyancing.
