The process when you buy new
Most of the time when buying a new-build home, construction work is either underway or hasn’t yet been started. There are a few stages to go through before drafting in conveyancing help. Firstly, there’s choosing the property, which is usually done from development plans, drawings or seeing the show home on-site. Once the right property is chosen, a non-returnable reservation fee is required to secure your purchase. The fee, which is usually no more than £2000 unless it’s a very high value property, is later taken off the purchase price when you reach the final stages of completion. There is then a period of four weeks to exchange contracts. However, in some cases, the more popular the development, the tighter the developers try to make the timescales. If a situation arises where you don’t manage to exchange contracts in time, you run the risk of losing both your reservation fee and the property.
Time for a conveyancer
It’s even more important when buying new, to instruct a conveyancer as soon as you have your offer accepted on your new build home, and get your mortgage arranged. This is where it’s important to select a conveyancer who knows how it all works with new-build homes. The legal process when buying a new property is far more complicated. Conveyancers who are used to working with new-build transactions not only know the processes and procedures but more importantly, the tight timescales required. But they’re also on your side, making sure the purchase process goes as smoothly as possible.
What can go wrong?
Buying a new-build home, there are often greater risks of something going wrong. Waiting for construction work to be completed can cause issues, especially if delays are caused which are outside of anyone’s control. Other issues which your conveyancer will check for will include any non-compliance with planning regulations, incomplete agreements for roads and sewers or not planning properly for the future maintenance of common parts of a development. When helping you with your new-build property purchase, your conveyancer will work to ensure your deposit is protected and the contract is in your favour. They will also look at putting into place, a long-stop completion date for the property to be built, ideally before any expiry date on your mortgage offer.
Conveyancers in your corner
Sometimes developers exert pressure on buyers to complete, even if there are issues with conveyancing matters. By having a knowledgeable, independent conveyancer working for you, they are less likely to succumb to any pressure. Your conveyancer ought to look for and highlight any restrictive covenants that have been written into the lease or registered against the freehold. If you do not already know what the property you are buying is, your conveyancer will explain whether it’s freehold or leasehold and in the case of leasehold, will set out the details of the lease. Once all is done and local searches have been completed, contracts can be exchanged. If you haven’t already had the details from your builder, ask your conveyancer about the ten-year guarantee which is usually provided by National House Building Council (NHBC), Buildzone, Premier Guarantee or another provider. Work with your conveyancer, for peace of mind to understand exactly what is and isn’t covered with the guarantee before exchanging contracts.
When it’s time to move in
It’s an exciting time once your new home is built, complete and ready to be handed over to you. However, take a moment to make sure a final check is done. Make sure you get all keys, any logbooks or user manuals, plus guarantees for everything from white goods to windows, damp proofing and timber. It’s also a good time to agree a defect reporting procedure, so it’s clear what to do should anything go wrong. It might feel like a mountain to climb when buying a new home, but a good conveyancer with ample experience with new-build properties will take a huge amount of the pressure off.
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