subject: A Conveyancing Solicitors Guide To An Easy New Build Property Sale [print this page] Buying a new build property is different to buying an ordinary home. To make sure that you do not encounter any problems you should instruct a solicitor experienced in new build conveyances.
Why is buying a new build different for other types of 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 a conveyancing solicitor 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 solicitor experienced in conveyancing will be familiar with the rigid timescales that a new build demands. Therefore they will know what specific pre-exchange 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.
Specifically, your solicitor can help you in the purchase of your new build 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 tailored advice for new build 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 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. Any failures under the agreement should be insured against by the developer.- Building regulations consents - your solicitor should check that the developer obtained building regulations. 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 following 2 years after completion NHBC provides cover for any problems that you encounter and cannot be 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 roads within the estate (before they are adopted by the council), a right to use the sewerage, water, pipes and cables.Buying newly built property, whether freehold or leasehold, is different from purchasing existing property especially if you buy off plan, ie when the house has not even been built yet. It is particularly important that you make sure you choose conveyancing solicitors who are experienced in new build sales - to maximise your chances of a stress-free home purchase.by: Tim Bishop
