BLOGS

Buying a New Build Home

The process of buying a new build home can be more complex than purchasing a property from a previous owner. Your future property may be built, be in the process of being built or be an “off plan” plot.  You will need an experienced new build conveyancer to make sure everything is in order before they keys are handed over on completion.

PLANNING PERMISSION AND BUILDING REGULATIONS

Your conveyancer will need to check for evidence of compliance with Planning Permission and Building Regulations. If the developer has failed to adhere to requirements this could mean that the local authority brings enforcement action.

If the property is still being built, the developer should confirm that they will build the property in accordance with Planning Permissions and Building Regulations.

ROADS, DRAINS AND SEWERS

The developer will need to construct the roads, drains and sewers to a level where the Highways Authority and Water Authority will take over responsibility for maintenance. This is known as adoption. Your conveyancer will need to check the agreements.

WARRANTY

The new build property will be sold with the benefit of structural warranty. Your conveyancer will ensure your warranty will be in place upon completion and provide you with a copy of the documentation should you ever need to make a claim in the future or sell the property.

Most developers subscribe to the National House Building Council (NHBC) or similar schemes such as the Premier Guarantee Scheme or LABC warranty.

MAINTENANCE FEE

Your conveyancer will need to check whether you will be required to pay a maintenance fee for common areas (such as play areas or open spaces, shared driveways or private accesses). Usually, a Management Company will be set up and will be responsible of future maintenance. The costs for any upkeep and maintenance for these areas will be payable by the individual property owners either monthly or yearly. The amount of this charge will vary depending on the development.

EXCHANGE

You will usually have 28 days to exchange contracts after reserving your plot and paying a reservation fee.

Once exchange of contracts has taken place, you will legally be committed to purchase the property.

If you exchange and the property is built, then the developer will usually offer you a fixed date for completion. However, if you exchange and the property has not been finished, completion will be ‘on notice’, which means once the construction of the property is finished, the Developer will serve notice on your conveyancer of the date for completion. The notice period will usually be between 5 and 10 working days.

Your conveyancer will agree a termination date (referred to as a longstop date) in your contract; this is the final date which the developer has to complete construction of the property. If the developer fails to do so by the termination date, you can terminate the contract and have your reservation fee and deposit returned to you.

At Pardoes our conveyancers are experienced in dealing sales and purchases of new build property and would be happy to assist you with your transaction.