Purchasing a new-build property differs significantly from buying an existing home, as the process involves unique legal considerations and additional checks. Whether you are buying off-plan or a newly completed home, understanding the conveyancing process for new-build properties is crucial to ensure a smooth transaction.
At Blackstone Solicitors, we provide expert legal guidance to clients across England and Wales, helping them navigate the complexities of new-build conveyancing. This article outlines the key steps involved and highlights important factors to consider.
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For a free initial discussion with a member of our new enquiries team, get in touch with us today. We are experienced in dealing with all aspects of residential property law and once instructed we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
What Is a New-Build Property?
A new-build property is a home that has recently been constructed and has never been lived in before. Buyers may purchase these properties:
- Off-plan, meaning construction has not yet been completed
- Recently completed, meaning the property is finished and ready to move into
New-build purchases often come with incentives such as developer warranties, Help to Buy schemes, and customisation options, but they also present unique legal challenges.
Step-by-Step Guide to New-Build Conveyancing
- Reserving the Property
Once you have chosen a new-build property, you will need to pay a reservation fee, typically between £500 and £2,000. This secures the property for a set period (usually 28 days) while the legal process begins. The reservation fee is usually deducted from the purchase price upon completion.
- Instructing a Solicitor
It is crucial to instruct a solicitor with experience in new-build conveyancing, as the process involves additional legal work compared to buying an existing home. Your solicitor will:
- Review the reservation agreement
- Check the developer’s legal title and planning permissions
- Ensure the property is covered by a warranty, such as NHBC, LABC, or Premier Guarantee
- Advise on any restrictions or obligations attached to the property
- Reviewing the Contract and Lease (If Applicable)
New-build contracts can be complex, so your solicitor will carefully review the terms, ensuring:
- The completion date is clearly stated, especially if buying off-plan
- The developer is responsible for finishing the property to the agreed specifications
- Any service charges or ground rent (for leasehold properties) are fair and reasonable
If the property is leasehold, your solicitor will also examine the lease terms to ensure there are no unfair conditions.
- Conducting Property Searches
Your solicitor will carry out standard property searches, including:
- Local authority searches to check planning permissions and potential developments nearby
- Environmental searches to identify contamination risks or flood zones
- Water and drainage searches to confirm proper utility connections
Additional searches may be necessary for new-build properties, such as road adoption checks to ensure roads and pathways will be maintained by the local council.
- Securing a Mortgage Offer
If you are using a mortgage, you must ensure your lender is willing to finance a new-build home. Many mortgage offers for new-builds have shorter validity periods (e.g., six months), so it is essential to work within the timeframe to avoid delays.
Your solicitor will ensure the lender’s requirements are met, including:
- Checking the developer’s warranty meets the lender’s criteria
- Confirming the property’s valuation aligns with the mortgage offer
- Exchange of Contracts
Once all legal checks are completed and your mortgage is in place, you will exchange contracts with the developer. This makes the transaction legally binding, and you will need to pay a deposit, usually 10% of the purchase price.
At this stage, the developer will provide a completion date, which can be either:
- Fixed completion date if the property is already built
- On notice completion date if buying off-plan, meaning completion will occur once the property is finished
- Completion and Final Checks
On the agreed completion date:
- Your solicitor will transfer the remaining balance to the developer
- The developer will hand over the keys once funds are received
- Your solicitor will register your ownership with HM Land Registry
- You will receive the warranty documents and other relevant paperwork
If buying off-plan, you should conduct a snagging inspection before completion to identify any defects that the developer must fix.
Common Challenges in New-Build Conveyancing
- Delays in Construction
If buying off-plan, construction delays can push back the completion date. It is crucial to have a contract that protects you if delays occur.
- Short Mortgage Validity
Some mortgage offers expire within six months, so buyers must ensure their lender is flexible if delays happen.
- Leasehold Issues
If purchasing a leasehold new-build, check for excessive ground rent or unfair clauses that could cause problems in the future.
- Snagging Problems
New-build properties can have defects that require fixing. Buyers should conduct a snagging inspection and ensure the developer addresses any issues before completion.
Conclusion
The conveyancing process for new-build properties is more complex than purchasing an existing home, but with the right legal support, it can be a smooth and straightforward experience. At Blackstone Solicitors, we specialise in new-build conveyancing and are dedicated to protecting your interests throughout the transaction.
If you are considering buying a new-build property in England or Wales, contact us today to discuss how we can assist you with expert legal advice and guidance.
How we can help
We have a proven track-record of helping clients purchase a new home. We are a multidisciplinary firm and have all the expertise inhouse to satisfy the most exacting requirements of our clients. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact Our Residential Property Solicitors
It is important for you to be well informed about the issues and possible implications of buying a residential property. However, expert legal support is crucial in terms of ensuring a positive outcome to your purchase.
To speak to a member of our New Enquiries Team today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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