New build conveyancing explained

However, while you might expect the new build conveyancing process to be straightforward, it is very different from that undertaken on an existing property and often more complex.

New build conveyancing involves a very different process from an older property due to the nature and detail involved. 

New builds require additional preparation and conveyancing checks such as planning permission rights and buildings regulations associated with the development. 

The conveyancing process can face more difficulties such as non-compliance with planning regulations, site and location plan issues, and structural delays around the building itself. 

However, having no chain and often no need for DIY inside the property, they are an attractive option for many first-time buyers looking for a modern property that is complete to move into. 

It is important that you instruct a solicitor who has experience and knowledge in each stage of the process to ensure a smooth process without delay.

The process

The process begins at reservation, where a plot on a development site is reserved by paying a fee and providing documentation to the developer. 

This will reserve the property for a 28-day period, and exchange will usually have to happen before this deadline. This short period between reserving the property and exchanging contracts is the main reason it’s vital to instruct a solicitor as soon as possible to ensure the reservation is not lost. 

If the property is being purchased with a mortgage, the lender will often have stricter criteria and the mortgage offer often only remains valid for six months, meaning there is also time pressure to secure a mortgage.

 Whilst surveying on new builds is not common practice, requesting a full specification plan from the developers is useful in getting an overview of the materials used and measurements of the property prior to moving in. 

A snagging survey is often taken out before exchange and is a visual survey to spot any issues, both cosmetic and structural. If the property hasn’t completed all building works, the developers will request completion on notice. This differs from older build conveyancing as a completion date is not set at the point of exchange. 

Once the building works are complete, the builders’ solicitors will serve notice, usually ten working days before the day of completion, giving the buyers time to sort moving arrangements.

Protection for the buyer

Due to the nature of new builds, the conveyancing process can involve uncertainty for the buyer compared to buying an older property. 

The building work on the property may be delayed. Therefore, a long-stop date can be negotiated with the developers so that if completion doesn’t take place within a certain time, the buyer can withdraw from the contract without losing their deposit payment and will likely receive compensation. 

It is also important to ensure protection against property damage is put in place prior to completion. 

A building warranty is essentially an insurance policy to cover a new build property owner from any structural defects or damage. There are many types of warranty available for new build properties. 

If a mortgage is being taken out, the lender must be notified as to whether the new home is building regulation compliant and accept the type of warranty on the property. 

The most common warranty that comes with new builds is a 10-year Buildmark warranty provided by National House Building Association (NHBC). 

The developer has a duty to repair all defects on the property within the first two years. After this, the warranty will cover for another eight years and will be passed on to the new owner if the property is sold within this period.

Contact our team of new build conveyancers

If you're looking to buy a new build property, our conveyancing team will guide you through the process in a friendly and efficient manner.

We have conveyancing solicitors and licensed conveyancers in Eastbourne, London, Brighton, Hastings, and Uckfield, and our clients are drawn from across the country.