New Build Conveyancing

New Build Conveyancing

What is completion on notice?

This means as the property is in the course of construction, the developer cannot commit to a fixed completion date and therefore this has to be on notice. The notice period is usually 10 working days and the notice will be served once the plot has been signed off under building control. Once received your Conveyancer will then undergo the completion preparations.

When should I instruct a solicitor?

When buying a new build, time is of the essence and therefore it is prudent to instruct as soon as you reserve the new build. If you can liaise with a solicitor before you even reserve, this would be ideal so you can conclude all the due diligence ahead of time so you are ready to proceed as soon as you source your new home.

What is a reservation fee?

This is a fee paid to the developer to reserve the new build. The fee is paid to the developer on reservation – this sum is then usually deductible from the deposit or on legal completion and therefore isn’t an overpayment but is offset against the final sums due.

What is the Consumer Code for new builds?

This is a code developed by the home building industry to make the home buying process fairer and clearer for purchasers. Information should be transparent to help you make an informed decision. There are three stages to the code, pre-purchase, during the purchase and then post completion. At each juncture this places an onus on the developer to be reliable and provide realistic information so informed decisions can be made. There are useful videos on the Consumer Code for Home Builders website.

What is covered under a construction warranty?

New home warranties do differ slightly but for the most part you should find deposit protection insurance which protects your deposit in the event the developer were to go into liquidation or the build did not complete for any reason this is the first benefit. The remainder of the protection comes into effect post completion. Your new home is covered under warranty for latent defects & structural issues which may arise – this tapers off during the 10 year term with less being covered the older the property gets. The warranty will not cover wear and tear, neglect or items which as appliances of the boiler – this relates to the structure of the property.

What information or documents are needed when buying a new build?

It is prudent at the first meeting with the developer to look at their plans, layout of the development, view the show home and get a feel for what is being constructed – you can check the specification of the build depending on the stage of construction. The Contract pack from the developer’s solicitors will be useful and will provide a full set of information. Your Conveyancer will advise you on the Warranty which is usually a 10 year guarantee. The developer will also provide a hand over pack to you on completion with certificates and warranties for any white goods and so forth. You will need to consult with a mortgage broker with respect to the financial aspects. It may also be prudent to engage a RICS surveyor who can discuss with you a snagging survey to be dealt with post completion.

What is included in the contract pack?

This is usually a full and comprehensive pack of legal documents. It does depend on the development but you would usually expect an information sheet explaining the development, Contract, the title documentation, planning, building regulations, warranty details, information on services and confirmation of how the communal areas will be maintained i.e. management company documentation and a fee schedule. There will also be plans showing the extent of the property being purchased with the supporting deed whether this be TP1 or Lease.

When will completion take place?

This depends on the build schedule. When you reserve the new build you will be provided an estimated completion date and as part of the legal work the Conveyancer will advise on timescales so you are fully informed before you commit to an exchange of contracts. There can be delays with new builds so it is prudent to ensure you are fully aware and able to wait if such a delay ensues.

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