Are you buying a New Build property?

Property legal Assistant Asia Gurung writes this helpful guide.

The conveyancing process for a new build differs slightly from that of a traditional property purchase. Timelines can be tighter and legal checks are often more detailed due to the nature of new developments. You will also need to instruct a solicitor or conveyancer who specialises in new builds.

Once you have reserved a plot, the developer will set a deadline which is commonly 28 days for exchange of contracts. Your specialist solicitor will: review the contract of sale, investigate title documents, planning permissions, and building regulations compliance, check for road and drainage adoption agreements, verify that the developer has the legal right to sell the property, order conveyancing searches and start to raise pre-contract enquiries with the developer’s solicitors. Your solicitor will also review warranties and agreements. Your solicitor will need to ensure the property comes with a valid new build warranty, such as an NHBC, LABC, or Premier Guarantee (usually 10 years) and check for any management company agreements and review covenants on the property.

Once all the enquiries have been addressed, legal checks and compliance have been satisfied, you will then be in a position to exchange contracts. At exchange of contracts, you will be required to pay a deposit (usually 10% of the purchase price). This exchange is legally binding, and your solicitor will agree a long stop date (a final date by which the build must be completed). However, if the property is build complete then you will have a fixed completion date. During this time, you may be asked to inspect the property (or arrange a snagging survey) before completion.

On the date of completion, completion funds will be transferred to the developer’s solicitors, and you will receive your keys. Your solicitor will ensure all necessary documents are lodged with HM Land Registry and you will receive confirmation of ownership once the property has been successfully registered which can currently take up to 24 months due to the delays at HM Land Registry.

For help with the purchase of a New Build property – contact Asia and our conveyancing team. Email info@wollens.co.uk