Conveyancing for a newly built property follows a similar process to that of existing properties, but there are some additional considerations due to the unique nature of new builds.
Here is an overview of the conveyancing process for a new build property:
Instruction of a Solicitor
As with any property purchase, the first step is to instruct a conveyancing solicitor who will handle the legal aspects of the transaction on your behalf.
Reservation Agreement
When purchasing a new build property, you typically start by entering into a reservation agreement with the developer. This agreement outlines the terms of the purchase, including the price, completion date, and any incentives or extras offered by the developer.
Legal Checks and Searches
Your solicitor will conduct various legal checks and searches on the property, including local authority searches, environmental searches, and checking the title deeds. They will also review the terms of the reservation agreement to ensure they are favourable to you as the buyer.
Review of New Build Contracts
Your solicitor will review the new build contract provided by the developer. This contract will outline the specifications of the property, the build schedule, and any warranties or guarantees provided by the developer.
Mortgage Arrangements
If you’re obtaining a mortgage to finance the purchase, your solicitor will work with your mortgage lender to ensure that all legal requirements are met. They will review the mortgage offer and ensure that it aligns with the terms of the new build contract.
Snagging Survey
Before completion, you may choose to arrange for a snagging survey of the property. This involves a professional inspection to identify any defects or issues with the construction that need to be addressed by the developer before completion.
Exchange of Contracts
Once all legal and financial arrangements are in place, contracts are exchanged between the buyer’s solicitor and the developer’s solicitor. At this stage, you will typically pay a deposit, usually a percentage of the purchase price.
Completion and Handover
On the completion date, the remaining balance of the purchase price is transferred from your solicitor to the developer’s solicitor. Once the funds are received, the property is legally transferred to you, and the developer will arrange for the handover of keys.
Warranties and Guarantees
After completion, your solicitor will ensure that you receive all relevant warranties and guarantees provided by the developer, such as NHBC (National House-Building Council) Buildmark warranty or similar, which cover structural defects and other issues.
Post-Completion Checks
Your solicitor will handle any post-completion checks, such as ensuring that the property is registered in your name with the Land Registry and addressing any outstanding issues with the developer.
It is essential to work with a solicitor who has experience handling new build transactions to navigate any unique challenges that may arise. Here, at MSR Solicitors, we do just that. We will also keep you informed of progress throughout the conveyancing process for a new build property, advise you on any legal issues that arise, and work to ensure a smooth and successful purchase. Why not contact us today.
