Purchasing a new build property is both different and more complex than buying existing property. To ensure your purchase is smooth and stress-free, make sure you get a conveyancing solicitor experienced in buying and selling new builds.

Why does a new build differ from other conveyancing?

The sale itself may be a sale of part of the plot. This occurs when the developer owns the whole area of land and is selling off individual plots with properties.

In order to reduce the risk of losing your new build property, make sure that you instruct conveyancing solicitors  as soon as you decide to reserve a new build. You should be thinking about obtaining a mortgage offer in time for exchange of contracts. You must therefore inform your lender of the anticipated completion date (which will always be an estimate) and make it clear that this could be subject to change.

When it comes to completion, the developer will notify you of when the property should be finished. They usually allow you a 10 working day gap prior to completion to inspect the property and produce a ‘snagging list’. This list will highlight to the builders any practical or aesthetic problems you have with the property. Your lender may also require a valuation of the property. You should be aware that even at this point a developer will rarely tie themselves down to a fixed completion date.

What does a conveyancing solicitor do in the purchase of a new build?

A conveyancing solicitor should be familiar with the tight timescales of a new build conveyance. Therefore they will have a good understanding of what pre-exchange issues and searches must be done. The developer will want a deposit for the property from you at the time of exchange; it is therefore vital that your solicitor has identified any potential issues prior to this point.

Your solicitor should be able to offer you advice on the potential risks of buying a new build off plan. They should also inform you of what pre-contractual obligations are normally agreed at exchange to ensure that you get what you bargained for at completion. Mortgage applications for new build’s are subject to special procedures.

How we can help your new build purchase

Our conveyancing team have a wealth of experience when it comes to dealing with new build transactions. We are frequently asked by developer clients to act as preferred legal advisors for new build buyers. Our experiences reach to leasehold developments as well as freehold purchases, this includes; retirement complexes, shared ownership developments and sheltered housing.

We can help your in your new build purchase by:

• Providing you with copies of all appropriate documentation related to the transaction;
• Dealing with any conditions that your lender may have as pre-requisites to the purchase (such as reinspection or guarantees);
• Drafting full reports on the contract of sale and any relevant documentation;
• Offering specialist advice on obtaining new building warranties; and
• Liasing frequently with the developer’s on-site managers and legal representation to ensure that you are on top of the process of your new build.

What additional documentation or information is required in any new build?

In addition to the HIP and other normal conveyancing documentation, your solicitor will also need to obtain the following:

• Planning permission – your solicitor will double check that planning has been granted for your particular property and that any conditions of the grant are being abided to by the developer.
• Estate roads – your solicitor will need to check that an s.38 (Highways Act 1980) agreement has been created between the developer and the local authority. This agreement confirms that the estate roads are the responsibility of the developer until they become publicly maintained (adopted) by the council. Default of this agreement should be insured against by the developer.
• Building regulations consents – your solicitor will need to check that appropriate building regulations were obtained by the developer. Building regulations monitor the use of materials and methods to ensure that the construction of new properties is done at a good standard.
• Structural guarantee – as a precaution, a structural guarantee should be obtained from the developer and/or building contractors. This ensures that in the event of a structural default you are able to get compensation. A guarantee of this type may be requested by your mortgage company as a condition to the loan. Please note structural defects also cover internal problems such as defective plasterwork or decorative mistakes.
• New building insurance – such as the NHBC Buildmark scheme. This scheme insures the property for up to 10. In the initial 2 years after completion NHBC provides default action to any problems incurred that are not fixed by the developer. After the 2 years have passed you can seek direct rectification of any structural defaults from NHBC for the following 8 years.
• Easements – the contract should provide for all the necessary easements (rights belonging to the property) including; a right of way over the estate roads until adopted by the local council, a right to drainage, sewerage and water and a right to use all pipes and cables for utility services.

Contact our new build solicitors

For new build advice you can trust, contact our conveyancing team today.

Our property solicitors can see you in our Salisbury, Andover, Verwood or Amesbury offices. Our solicitors also regularly represent employees in new build transactions throughout Wiltshire, Hampshire and Dorset including Westbury, Ringwood, Winchester, Fordingbridge, Frome, Whitchurch, Ludgershall, Overton, Shaftesbury, Sherborne, Stockbridge, Lyndhurst, Gillingham, and Romsey.