New Build Conveyancing Solicitors

How is New Build Conveyancing Different to Other Processes?

New build conveyancing involves the purchase of a newly constructed or renovated home as opposed to an older existing property. Buying a new build property can pose more challenges than an older property. The timescale for a new build property is much tighter as there is no seller seeking a house to move to, therefore you can make your reservation deposit once you have found the right house. You might even purchase a property before construction has started. Once a deposit is made the house builder usually leaves just four weeks to exchange of contracts, after which your reservation may be lost. This is why it is important to instruct one of our experienced and knowledgeable solicitors who can understand the complexities of the new build process and to keep the purchase as stress-free as possible.

Making a Reservation Deposit

Once you have found a new home, you will be able to make a reservation deposit, the price of which depends on the property. This gives you time to apply for a mortgage if you need to. A mortgage tends to be the most time consuming aspect of a transaction. The deposit also allows for your conveyancer to carry out any searches needed. These searches allow your conveyancer to gather as much information as possible on the property and the area so that any possible factors that will affect the home are brought to attention before you legally own the property.

You should be aware that this does not permanently reserve the property for you and if you fail to act in time the seller can move the property on.

Exchanging Contracts

Due to the aforementioned timescale, you’re likely to be asked to be ready to exchange contracts within a set period of time, usually 28 days. It is important to remember this and it is best to discuss these timescales with your conveyancer in order to identify any potential issues as early as possible. Any issues can then be discussed with the housebuilder. You will pay a deposit upon exchange, the price of which varies. When making a deposit you should bear in mind that you may have to provide evidence of where your funds are coming from, such as bank statements, to your lender.

If the property is built or nearly finished, you may be given a similar timescale for legal completion. If the property is nowhere near finished, any information you receive about timescales for completing the build will be given in good faith, but can’t be relied on; it is common for build estimates to change during the building process.

When making a contract, it is important that you plan for any possible defects with the house if building work is still being carried out at the time by creating a snagging provision in your contract. By doing this, the information can then be given to the builders who can amend any problems before the final purchase.

Completion

The completion is usually ten days after the house has been built and the property is handed over to you. You should be provided copies of all the relevant guarantees. Mortgage funds will also be released at this stage.