New build conveyancing is a specialist category of property transactions, handled by a smaller number of conveyancers who specialise solely in dealing with new home builds.
New build conveyancing can be necessary when you are buying a home that has never before been sold. In this post, we’ll discuss new building conveyancing for you to understand it better.
A More Complex Type of Conveyancing
New build conveyancing is more complex compared to other types of conveyancing. This is because the possibility of something going wrong is a lot higher here, such as non-compliance with planning regulations, incomplete agreements and many more. Indeed, it’s easy to get lost in all of it, which is why it’s crucial to research and understand what goes on with new build conveyancing.
What Must be Done Before New Build Conveyancing
Some things need to be done before the whole process kicks off. First, you need to sort out your finances and secure your mortgage before contracts are exchanged.
Keep in mind that standard mortgage offers are only valid for six months. So, when looking for a new property, you need to ensure it will be finished within that timeframe given by your lender; otherwise, you will need to apply for an extension, or in some cases, reapply for the mortgage at a later date.
Next, you need to check the property before you pay for the reservation. Ask for the nitty-gritty, like the full landscape drawings and electrical plans. It’s also a smart move to check out other properties under the same developer to determine if they meet your standards.
Some developers will let you choose fittings or appliances of your choice, while others can provide you with free parking.
What Happens When the New Build Conveyancing Process Kicks Off
The conveyancing process begins when your offer has been accepted. As soon as this happens, you will need to secure the home by paying the reservation fees that will reserve the new build for a set period. Furthermore, the legal process will start to run to prepare for the exchange of contracts.
The fees you will pay at this stage will be deducted from the final purchase price upon completion. Keep in mind that these fees are not refundable.
You will need to pay a deposit between 10% and 30% of the total price upon exchange to the developer’s solicitor. Then, you will sign a contract that you agree to purchase the property at the current price and pay off the balance at completion.
During the process, it’s essential to have a snagging provision written in the contract as well. This is because some new build contractors don’t allow buyers to view the property until construction is done. Have the snagging survey done before the final payment as well so you will see issues early on.
Once the new home is complete, you will be issued the keys, owners’ manuals and other necessary documents. Make sure you have all copies of the property guarantees for your protection in the future.
Your New Home Awaits
New build conveyancing is required because the documents needed will not exist or will be incomplete without it. Therefore, having a solicitor to facilitate all of these is vital to the process. Understanding the basics is crucial to help you go through the process as smoothly as possible.
Compare conveyancers in the UK with our help here at the Conveyancing Store. We can help you find the right new build solicitor for you. Request a quote today.