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Buying a new build property has a unique conveyancing process, especially if purchasing off-plan, so choosing an experienced new build conveyancing solicitor is key. Here we explain how the process differs, what your solicitor will do, and the steps involved in buying your new build home.
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Conveyancing for new build properties has quite a few differences, from tight exchange deadlines to unique legal checks, so it’s essential to work with a conveyancer who understands the extra steps, potential risks, and developer requirements involved. This guide walks you through the conveyancing process for new build homes and the role your conveyancer plays.
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When buying a new build home, you often have to commit to your purchase before the building work is completed, sometimes even before it begins, a process known as buying off-plan. This means you’re effectively basing your decision on a show home or computer-generated drawings. As a result, new build conveyancing can be more complex, involving tight exchange deadlines and additional legal checks on warranties, planning permissions, and developer agreements. There are also risks less common with older properties, such as build delays, discrepancies in plans, and developer-imposed restrictions, all of which your conveyancer will need to manage.
Find other differences about buying a new build in our pros and cons to buying a new build article.
Buying a new build house can be particularly tricky because of the fact that the house isn’t necessarily built when you buy it, or at least start the buying process. This means that you’ll need a conveyancer to complete specific new build conveyancing tasks. So, not only will you need a conveyancer, it’s likely that you’ll need a specialist new build conveyancer, who is experienced in the new build conveyancing process and experienced dealing with new build developers.
Extra complications that your conveyancer will help you navigate can include non-compliant discrepancies with location and site plans, specific new build inspections, such as the National House-Building Council (NHBC)'s Building Control Service, incomplete agreements and failure to confirm plans for the maintenance of communal areas.
This step-by-step breakdown explains the essential stages involved in new build conveyancing.
The conveyancing process starts as soon as your offer has been accepted and you have paid your non-refundable reservation fee. It’s important to choose a new build conveyancer who is experienced in working on new build purchases.
You’ll also want to get your mortgage in place as soon as possible, as there is often a tight deadline to exchange contracts. Although deadlines can sometimes be extended, you may find that there’s a financial incentive for meeting agreed timescales. You’ll also ensure that you won’t lose either your reservation fee, and the house, by meeting these initial deadlines.
This is usually a quick and intensive process with only 28 days between reserving the property to exchanging contracts. Conveyancing checks for new builds tend to include:
Checking the correct planning permission has been granted, and the property has been built in accordance with it. This also includes the building of the estate itself, that roads, drains and utilities have all been properly established.
Checking if the property has any covenants registered against it. Covenants can restrict you from doing certain things and so it’s important you are aware of these. They can include things such as not allowing extensions or restricting you from making alterations to the way the property looks, for example.
Checking whether the property is leasehold or freehold. Thanks to the leasehold reform, new build houses will most likely be freehold, meaning you own the property and the land it sits on. However, if it is a leasehold, your conveyancer will run further checks to see details of the lease which will include how the common areas are to be managed and the costs of management fees.
You pay the deposit when you exchange contracts. For new builds, this deposit amount required is often higher than for older properties, usually starting at around 10% of the purchase price. Many developers also offer incentives, such as a deposit contribution, which may allow you to buy with as little as 5%.
Your deposit should be protected. Check that your developer is registered with a warranty provider (such as the National House-Building Council) or a reputable insurance scheme, as this can protect some or all of your deposit if the developer becomes insolvent before completion. You should also ask your conveyancer to include a clause in your contract specifying what happens to your deposit if the developer becomes insolvent.
This happens once all checks have been completed, usually within four weeks of reserving the property. At this stage, you’ll agree to purchase the property at the current market price and confirm that you will pay the final balance on completion.
As with any property purchase, exchanging the contracts makes the sale legally binding. Before signing your contract ask your conveyancer to include:
Deposit protection - a clause outlining what happens to your deposit in the event of unreasonable delays or if the developer becomes insolvent.
Defect protection - a clause confirming the developer will fix any issues identified in your pre-completion inspection or snagging survey (more about this in step 5).
Snagging surveys are a specific type of inspection designed for new-build properties. If your new build comes with a warranty from a provider such as National House-Building Council (NHBC), you may be entitled to a pre-completion inspection (PCI). However, if your developer doesn’t allow access to the property before completion, you’ll need to arrange a snagging survey after you’ve completed. In either case, it’s your responsibility to arrange the inspection. Your conveyancer should make sure it is clear in your contract that any defects identified through the snagging survey or PCI will be fixed by the developer after completion. Find out more about snagging surveys and what they cover.
This is the date when your conveyancer will transfer the funds provided to the developer's solicitor and the house is yours! On completion, you’ll receive your keys, building logbooks and any owner’s manuals and warranties. If you weren’t able to get a snagging survey prior to this point, you should get one as soon as possible, so you can make the developers aware of any outstanding issues that need fixing.
Yes, difficulties may be faced with non-compliance of planning regulations, NHBC inspections not being arranged, discrepancies in the site and location plans, local authority agreements and the completion of the roads and sewers over the whole development.
Unlike purchasing an older property, a new build property may not have been built, or in the process of being built, when you purchase it.
It is usual to have only four weeks to exchange contracts after reserving the property.
Compared to buying an older home, a fixed completion date is often not given. Instead, written notice is given to the buyer when the property is structurally complete, for completion to be carried out within a set time, usually 10 working days.
We work with conveyancing solicitors experienced in new build purchases. Get your conveyancing quote today.
You will typically have four weeks to exchange contracts. If you don’t manage to do this, then the builder can pull out of your deal, meaning you lose both your reservation fee and the house.
As soon as you have an offer accepted on a new build home, you need to immediately instruct a conveyancer and get your mortgage in place.
To provide additional peace of mind, you should be protected by a ten-year guarantee from the builder which is usually provided by the National House-Building Council (NHBC), Build-Zone, or another specialist warranty provider. You should ensure that you know exactly what is and isn’t covered and for how long before you agree to exchange contracts.
Find more information about new build warranties and aftercare in our top tips when buying a new build guide.
A PCI is carried out before completion. It allows you to identify visible defects or unfinished work so that the developer can fix them before you move in. A snagging survey is done after completion and provides a more detailed inspection of the property. It identifies any defects or poor workmanship that must be rectified under your developer’s warranty, usually within the first two years.
If your developer does not permit access before completion, you will not be able to have a PCI, and your inspection will take the form of a post-completion snagging survey instead.
Tailored to you: We will match you with a conveyancing firm who specialise in new build property purchases, ensuring expert guidance every step of the way.
Trusted by our customers: The conveyancing firms we work with put their customers first, and are rated excellently, so rest assured you'll only ever receive the best service.
Online document submission: All the conveyancers we work with are based online, so you'll never need to visit your conveyancers offices. You can manage your move online through our eWay portal, meaning a lot less paperwork and delays.
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