Sarah is here to help house buyers and sellers get to grips with the conveyancing process. This month, she discusses the nuances of purchasing a new build property\u2026<\/p>\n
Buying a new build home is slightly different to the normal purchasing process. Whilst there are drawbacks and often, you are taking a step into the unknown, there are numerous benefits to being a property\u2019s first owner, making it a popular choice for many house buyers.<\/p>\n
Here are some of the issues you may face:<\/p>\n
You are likely to be reserving your new build property before there is anything tangible to view. This is obviously riskier than buying an existing house, as you are basing your decision on a show home, an artist\u2019s impression, the brochure and any verbal descriptions you are given.<\/p>\n
However, there are advantages to buying off plan. For example, you can secure a highly sought-after property and because it is brand new, it will come with some form of structural guarantee. There is also the potential for discounts on the price and if you reserve early enough, you may be able to select options, such as kitchen fittings and bathroom tiles.<\/p>\n
If you wish to buy a new build property, you will be asked to sign a reservation form and pay a non-refundable fee to demonstrate your commitment.<\/p>\n
Before signing the reservation form, it is important to view the site on which the property is located and any show home, read the specification relating to the property and ensure you have funding in place and a solicitor appointed, so you can proceed with the purchase.<\/p>\n
Before you exchange contracts, your solicitor will carry out all of the appropriate searches and enquiries on your behalf. They will also forward details of the planning permission for you to review, check if there are any conditions imposed on the property restricting what you can do and give you an estimated completion date.<\/p>\n
As mentioned above, all new build properties come with some form of building guarantee – mostly for ten years – that covers the structure. This should give you comfort, moving forward, that it has been constructed properly. If any issues come to light, you can make a claim on the guarantee to have them put right.<\/p>\n
It is common for new builds to be subject to a number of covenants, determining what you can and cannot do whilst living there. For example, you may have to obtain consent to make alterations to the property.<\/p>\n
You need to review these covenants and potentially ask your solicitor to obtain approval for any changes you are looking to make following completion, before committing to the purchase.<\/p>\n
It is also customary for new build developments to have shared access ways or rights reserved in respect of wayleave agreements for utility suppliers. Your solicitor will highlight these points before you proceed any further.<\/p>\n
Because the property is not built, there are added complications with the exchange and completion process.<\/p>\n
Normally, you will be required to exchange within 30 days of your reservation, but developers will usually agree to an extension if you can show all steps have been taken to meet the deadline.<\/p>\n
Unless the property is built, you will not be given a completion date on exchange of contracts. Instead, formal legal notification will be served when it is ready, allowing you ten days to complete the transaction. It may, therefore, be appropriate for your solicitor to request a longstop date, which is inserted into the contract to ensure the developer has the property ready by a certain time. If it is not met, it gives you the option to terminate the purchase, so you are not committed to a transaction that drags on for months, or even years, beyond the estimated date you were given.<\/p>\n
Depending on your completion date, funding a new build property can become an issue.<\/p>\n
Most mortgage offers are only valid for six months and this is something you will need to consider carefully before exchanging contracts, as you are then legally bound to proceed with the transaction. You need to ensure you will still have funding in place if the completion takes longer than six months to achieve.<\/p>\n
When your solicitor receives notification that the property is ready to complete, you will need to arrange to inspect it and draw up a list of works to be carried out to bring it up to the expected standard.<\/p>\n
This final inspection should be done by you and a representative from the developer. The builders are then obliged to complete the snagging within a reasonable time following completion. You will be expected to complete before the snagging is finished and you will need to allow the contractors reasonable access once the property is in your ownership.<\/p>\n
Developers are obliged to take care of all snagging works and defects to a property within two years of completion. You then have the warranty to fall back on, to cover any issues that may arise after this point.<\/p>\n
If you would like advice on buying a new build property, don\u2019t hesitate to contact me or my conveyancing colleagues on (0114) 218 4000.<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Sarah is here to help house buyers and sellers get to grips with the conveyancing process. This month, she discusses the nuances of purchasing a new build property\u2026 Buying a new build home is slightly different to the normal purchasing process. Whilst there are drawbacks and often, you are taking […]<\/p>\n","protected":false},"author":14,"featured_media":2519,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[334],"tags":[],"class_list":["post-3478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conveyancing-blog"],"yoast_head":"\n