- New Enquiries
Purchasing New Build Properties
Purchasing a new build property is purchasing your new house before it is even built or whilst it is being built. The Conveyancing transaction is slightly different to a normal residential purchase of a home when the property is not yet fully constructed.
Reservation Fee, Incentives and Exchange:
Once you have chosen your new build home you are required to put down a reservation fee for the property. The reservation fee is usually non refundable but it is offsets against the purchase price once you reach legal completion.
Once you have put down the reservation fee you are usually given around 4 weeks to exchange contracts. If you are to miss the exchange deadline, you run a real risk of losing your reservation fee and in the worst case scenario, the developer may put the property back on the market.
Sometimes the developer will include incentives if you exchange within the stipulated timeframe so these could be lost too. The developers of the property can be very strict when it comes to meeting the deadlines imposed, but sometimes they may agree to an extension of time.
Completion on Notice:
Completion of a new build property differs from a normal residential property.
Exchange is, in most cases, on notice i.e. no fixed completion date given. Once the property is structurally complete and approved by Building Control, the developer will then issue a Notice to complete through their solicitor. It could take months for the notice to be issued however the developer will usually give an estimate at the outset.
The notice gives 10-14 days to legally complete the purchase of the property. As soon as notice is served, we would request your funds and do final checks to make sure completion goes through smoothly.
A few tips for the New Build Purchase Process:
- Due to the time scales imposed, it is best to instruct solicitors as soon as the property is reserved
- If you require mortgage finance, an application should be made as soon as possible, if not already in place.
- We will take care of making sure the property you are purchasing is legally safe to purchase. We will report to you on the title and apply for the relevant searches that will be required on the property. If you do have any questions, please raise them with us straight away.
- Once the property is nearing structural completion, developer will ask you to do a final inspection. If there are any ‘snagging’ issues, raise it with the developer straight away so that they can be resolved.
At Johnson Astills Solicitors we are aware of the time scales and the pressures of dealing with new build properties. We understand the process and deadlines that are imposed. We will guide you every step of the way to ensure your purchase is as smooth as possible.
Our Conveyancing team at Johnson Astills can assist you in you in the purchase of New Build Properties and provide you with further information regarding any conveyancing queries. Please contact us at our Leicester Office or Loughborough Office on 0800 059 0600.