Conveyancing is a crucial part of buying a house.
It gives you peace of mind that everything is in order.
New build conveyancing has a few steps different from a ‘typical’ house transaction.
Below, we’ve given a guide to new build conveyancing.
Do I need a conveyancer when buying a new build?
Yes, you need a conveyancer when you buy a new build.
It is a house purchase just like any other. So, due diligence is needed.
In many cases, you’ll need to agree to buy the house before the building is finished. You’re committing your money before you can evaluate the house.
Conveyancers experienced with new builds
You need a conveyancer familiar with new builds and their common issues.
They will ensure the contract suits you and your deposit is protected.
They also ensure a “long-stop” completion date on the property. This means a guaranteed date for completion.
If the developer fails to meet this commitment, you can leave the contract and get your money back.
Is new build conveyancing different?
Yes, new build conveyancing is different in a couple of ways.
The level of risk is greater with a new build.
Examples of risk include:
- Structural issues (e.g., foundations haven’t even been dug. Or the roof hasn’t been put on the shell of the building.)
- Non-compliance with building regulations
- Failure to arrange new home building insurance inspections
- Developers failing to complete agreements for roads and sewers
- Homes not being built to the original plans.
A conveyancer can check in with these details throughout the building process.
They can then check that everything is done according to the contract. And if not, you can leave the deal and get your money back.
New build conveyancing process
Reserving your new home
Your first step is to pay a fee to reserve the property.
This is usually somewhere between £500 – £2,000, depending on the house value. Check with the developer to clarify this.
This amount is taken off the final selling price. But it is also non-refundable, even if you walk away from the deal.
When you pay this, you should get a reservation agreement. This shows everything included in the purchase price. Ask for one if you don’t get it upon payment.
It is recommended that your Mortgage In Principle has already been organised before making a reservation.
Instruct your conveyancing solicitor
Once you’ve reserved the property, conveyancing begins.
They will then carry out checks, such as:
- Confirming the correct planning permission is granted
- Ensuring the property has access to gas, water & electricity
- Checking for restrictive covenants
- Finding out if the property is leasehold or freehold
- Completing local authority searches
- Reviewing the T&Cs of your mortgage offer.
Once these checks are complete, the correct new build insurance must be taken out.
This is known as ‘NHBC’. It protects you against things like a structural defect.
Exchanging contracts on a new build property
The next step is to exchange contracts. This is when you pay your deposit.
Following this, you will be given a contract stating you agree to purchase the property.
It also confirms that you will settle the balance upon completion.
Your conveyancer should check the contract to ensure the price is locked during exchange. It protects you from any price changes before completion.
Before moving on to completion, the conveyancer will do any outstanding searches and financial checks.
Completing on a new build property
Completion of a new build can take as little as 10 days. This means the builders have signed off the house as structurally secure.
You may have been advised of a ‘snagging survey’ when contracts were drawn up.
This establishes any structural defects or cosmetic issues within the property. It should be completed so that the developer can rectify the problems.
Once this is done, your conveyancer will arrange the payment of stamp duty. Then, register your ownership with the land registry.
They will also contact the NHBC to register your ownership and forward you the ‘guarantee certificate’.
How long does new build conveyancing take?
Conveyancing on a new build home takes around 12 weeks.
But you’ll also need to factor in the waiting time for the property to be completed – months or even years in some cases.
Can the developer offer me a conveyancer to use?
Yes, sometimes a developer will offer to use their conveyancer for you. This might come at a reduced rate.
If you feel confident that this is a trustworthy organisation, it’s worth considering – especially if it’s financially advantageous.
But in almost all other cases, you should hire an independent conveyancer.
They will represent you without any conflict of interest. And they will ensure that you aren’t misled in any way.
Some developers have put pressure on people to complete the transaction without conveyancing.
You should never go along with this. By hiring your own independent solicitor, this is less likely to happen.
