New build properties are becoming increasingly popular among purchasers, particularly first-time buyers. When buying a new build property, the purchasers only see a show home. Based on that, then reserve a plot on which the developer will build the property, ready for occupation. It is therefore important to understand the process of buying a new build home.
Tight deadlines
Once you have reserved your plot and instructed solicitors, the developers require the exchange of contracts to be as soon as possible. The housebuilders normally give a deadline between 4-6 weeks in which exchange of contracts should take place. If this deadline is not adhered to, the house builders may sell the plot to someone else and the buyers can end up losing their reserved plot as well as their reservation fee.
For this reason, it is crucial that your instructed solicitors can work quickly and in line with the strict deadlines. They need to understand how new-build contracts work and have experience in dealing with planning permission implementation and road and drainage adoption to ensure they raise and resolve both generic and plot-specific enquiries in a timely manner.
Early exchange
Exchanging contracts means that the purchasers and the developers are committed and legally bound to buy the property. The biggest difference between buying a new build property and an older home is that this exchange happens even before the property its built. Therefore, prior to exchange of contracts all issues need to be concluded. This is because once the contracts have been exchanged, both parties must proceed with the transaction to avoid repercussions.
Completion on notice
Unless the property is already complete and ready to be occupied, the exchange of contract will be on notice. This means that no fixed completion date can be given, and completion will take place once written notice is served by the builders.
Most builders normally require completion within two weeks of serving the notice to complete, unless an earlier date has been agreed. These two weeks allow time for any final inspection that the mortgage lender’s valuer may need to carry out; for the buyer to prepare a snagging list which gives the builder time to rectify any issues with the property; and for the mortgage lender to release the funds in good time for completion. This also ensures a smooth, stress-free transaction can be achieved.
Specialist new build solicitors
At Levi Solicitors LLP, we have a specialist, dedicated new build team; focussed on getting you quickly through the process of buying a new build home.
We work closely with a number of the UK’s biggest housebuilders and are driven towards exchange of contracts. We have a wealth of experience in dealing with planning regulations, NHBC inspections and certificates, agreements for roads and sewers etc.
If you are considering buying a new build property, click here for an instant quote for our conveyancing services. Alternatively, call us on 0800 988 7756 for a no obligation quotation.
