Any property transaction can be tough but buying a new build can make things even more difficult due to the lengthier time between exchange and completion.
When buying a new build, it is crucial to have a conveyancer on board right away to assist with any concerns that may come up during the process, to work on the contract, and to help work towards a feasible completion date. For this reason, it’s crucial to use a conveyancer who knows how to deal with new build conveyancing. But how does this process work?
Making an offer
When submitting an offer, you might have to pay a reservation fee in order to hold the new build and facilitate the legal procedure leading up to the contract exchange. This charge will not be refunded if you fail to exchange contracts or if you decide not to proceed with the sale. This fee will be subtracted from the total price at completion. You will now give a conveyancer your instructions after doing so.
Using your conveyancer
Your conveyancer will conduct specific searches as part of the new build conveyancing process after receiving your instruction. The planning permission will be checked, the lease details will be provided, and restrictive covenants will be highlighted. It is crucial that the conveyancer registers the property on the land registration for the first time because this refers to new build properties.
When your offer is approved, it will be time to pay the deposit. For new build properties, this deposit may range from 5% to 30%. You will be required to sign a contract that has been prepared by the developers to guarantee that you will purchase the home at the current price, and will pay the remaining balance upon completion.
It is normal for new build buyers to wait until after construction is completed to visit the property, and it is also typical for some new buyers to be dissatisfied with the quality of the work done on the house. Your contract should include a snagging provision that specifies what will happen if there are any mistakes or issues with the property that the builder needs to fix.
Before the last payment is made, make sure you conduct this rigorous check because any mistakes discovered after you are declared the legal owner may be considered habitational wear and tear.
If you are looking to purchase a new build, look no further than Cavendish Legal Group’s team of solicitors. Cavendish Legal Group’s new build specialists can help you with this and any questions you may have. Contact our team today!