The Government continues to support the building of new homes and so the property you have chosen to purchase may well be a new build. Quite often the building work of your new home may not be complete and construction still underway. Sometimes construction may not even have started and you might be proceeding on the basis of what you have seen in the show home and so are ‘buying off plan’.
You will often have had your offer accepted and paid a reservation fee to secure your new home. It is always a good idea to check other estates the developer has finished if possible so you can get an idea of what your new home and development might look like, once finished in the future. The developer may have offered you a form of ‘incentive’ which could relate to fittings in the property or a free parking space for example, when a charge would normally be applied. You should also have been supplied with The Consumer Code for Home Builders by the developer. The next important step is to instruct a legal team to undertake the conveyancing process on your behalf. Sometimes developers have their own legal teams but many purchasers prefer to choose and instruct their own firm of solicitors.
The conveyancing process is similar to that of a standard purchase of an existing property. You will be advised on the title documents whether that is freehold or leasehold and the implications of this, you will be made aware of covenants (conditions) that you have to comply with, conditions of use, planning information and information arising from appropriate search results for the property in question. You will receive advice on any mortgage where applicable, exchange of contracts and the process through to completion of your purchase. However, with a new build purchase, there are some extra areas to be considered and additional steps to take, in order to effectively and fully advise you on your purchase.
Developers often set strict timetables to reach certain stages in the conveyancing process and it is important the person acting for you in the conveyancing process manages the timetable with the developer on your behalf to ensure all issues are investigated and addressed fully by the developer. You will not want any surprises or matters you are not aware to only become apparent after you move in.
Issues that must be reviewed in a new build purchase can vary although will usually include checking if the developer has compiled with all planning obligations, if not, why not. Are the agreements for the roads and sewers finalised? As a purchaser you would not want to find yourself liable down the line for road and drainage charges. Does the property have a suitable 10 year new home warranty to protect you against structural defects revealed after the build is complete? What happens if the property has not been built in accordance with the original plans? Are there adequate provisions in place for maintenance of the common parts in the future, after all, you will want the development to be well kept and looked after. All of these issues are relevant to your purchase and may well be raised again when you come to sell the Property in the future. It is therefore important you store safely all documents and information you are provided by your legal advisor in the conveyancing process for future reference.
Once all issues have been satisfactorily resolved, exchange of contracts takes place when you will be required to pay your deposit, usually 10% of the purchase price. If the property is not finished on exchange of contracts it is important to agree a suitable ‘long-stop’ completion date with the Seller. Completion is one of the last stages in the process which usually takes place 10 working days after the developer has finished the building work and the property has been signed off as structurally secure by Building Control. It is during this time you should arrange for a ‘snagging’ list to be prepared to notify the developer of any cosmetic or structural issues with the Property such as bad paint work or a faulty staircase, which the developer should then fix.
For many, buying a new build property is the right option for them. After all, buying a brand new home is of great appeal. There are also many related benefits such as being chain free, homes are usually more energy efficient and come with a new home warranty. Once you have found a new home it is crucial to instruct conveyancing solicitors as soon as possible to advise and guide you through the additional hurdles such purchases present.
For more information and to find out how we can help you, please contact us on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.