New Build Conveyancing
If you’re planing on purchasing a new-build property you’ll need an experienced conveyancer that understands how new-build contracts work.
How is conveyancing different for new-build homes?
Buying before built When you’re buying a New Build property, most of the time buyers will have to exchange contracts and commit to the purchase before the property is even built. The buyer will have probably seen a show-home and then made a reservation to buy the house under construction.
After making a reservation to purchase a new build, the house builders will usually give you (the buyer) a month to exchange contracts. If your conveyancer doesn’t exchange in time you might lose the house and reservation deposit. That’s why you’ll need to instruct an experienced new build conveyancer quickly to avoid losing out.
There is no fixed completion date for the sale because building work might take longer than expected. You might have to wait up to a year after exchanging contracts until the construction is complete. So if you’re having a mortgage, the mortgage offer might need to be extended.
When the property is finished and all building work is completed, the builder will give a written notice to the buyer that it is ready and it’s time to complete the sale contract. You’ll usually be given 10 days to do final checks, have a mortgage inspection/valuation and give a snagging list.
The conveyancing fees are usually slightly increased for new build properties for the extra work included.
Do I have to use the builders/developers solicitor?
Estate agents, property developers and mortgage advisors routinely put pressure on buyer to use their chosen solicitor for the property transaction, but you don’t have to use them.
New Build buyers have the right to choose their own licensed conveyancer or property solicitor. Members of the Solicitor’s Regulation Authority (SRA) and the Council for Licensed Conveyancers (CLC) are supposed to ensure that their clients have instructed them to act without being pressured to do so.
If you’d like to use your own conveyancer/solicitor, but you’re being pressurised into using a different one, seek the advice of the SRA or CLC.
Buying a new build property is very different from the normal house buying process. If you find a new build property you’d like to buy, make sure you instruct an experienced new-build conveyancer as soon as possible.