It is many people’s dream to buy their own home and particularly to buy a new house that they can put their own ‘stamp’ on and be the first owners. But is conveyancing different for new-builds? We find out.
Why Is It Different?
You would think that because a property is a new-build the conveyancing would be straightforward. But apparently not, because with a new-build there are more things that the conveyancer or solicitor needs to check. For example, the building might not have complied with local planning regulations or deviated from the original architectural plans, or perhaps the builders have not agreed the layout and provision of access, services and drainage. In an older property, such steps would have been verified through previous purchases.
How Is It Different?
Initially your conveyancer will reserve your interest in the new-build or plot by paying a reservation fee. This ensures that your interest in the property is registered and prevents the builder or building company from selling to another buyer. It is important to have the full asking price already agreed before you commit to reserving a new-build, but your reservation deposit will be deducted from the final selling price. AUTHORITY URL: https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/new-build-conveyancing-explained/
Yourconveyancer will undertake detailed searches of the potential building plot or new-build to ensure that all regulations have been complied with before they commit you to paying for a property. This conveyancing process could include:
– Reading the terms of your mortgage.
– Ensuring the building complies with all local authority planning rules.
– Checking that the property will have access to all the necessary supplies, such as gas, electricity, water, drainage and road access.
– Checking if the property is freehold or leasehold. (Some properties have shared ownership, so your conveyancer will check these terms to make sure you understand your commitments.)
Liaise with Building Company
Before the final handover of the new-build, your conveyancer will make sure that any faults in the property are dealt with. This is called a snagging report. It is sometimes the case that a new-build develops minor issues, which the builder will have time to rectify. The building will also need to be released by an inspector, who will confirm it is structurally sound before you complete the purchase.
Finally, the solicitor will have to register your purchase through the NHBC to ensure you have a guarantee in place on the property.
There are some important additions to the usual conveyancing of a new property. But with the help of a conveyancer who is experienced in these steps, you will soon be in your new home.