An Overview on New Build Conveyancing
Conveyancing smoothens the home buying process for all parties involved, which is why it’s more popular to hire them for finalising paperwork. However, certain steps will differ, depending on the kind of property sold. This applies to homes still in the development process, which can get tricky regarding the confirmation of deeds and payments.
New built homes are typically more expensive than older properties. This is because its fixtures and material are still to be built. Additionally, most new build homes offer far lower long-term maintenance costs in its development, unlike older homes. Since it’s still a project in progress, some steps in the conveyancing process will be slightly different with these properties. If you’re unsure how your negotiations and interactions should go, there’s still time to do your research beforehand.
In this article, we’ll go over the different steps in new build conveyancing.
Step#1: Double-Check Your Purchase
The big risk in buying new build homes is that it’s not yet a completed property. For this reason, you’re putting your resources on something you can’t use at the moment. While this prevents other requirements like home inspections, you’ll need to do plenty of reading through documents and paperwork.
Before making a reservation on a property, pay close attention to landscape drawing, electrical plans, plumbing fixtures, and other essentials. It will also help to have a professional look at these blueprints to get a professional opinion. Other than studying these documents, you can also visit a developer’s other properties with similar designs. Double-checking your prospects thoroughly in this way helps you determine the justifiable price for your purchase.
Step#2: Pay the Reservation Fee
Besides paying the initial deposit, securing a new build home often comes with a reservation fee. This is usually cheaper the earlier you make your purchase. This also accounts for legal processes that end with the exchange of contracts. Eventually, this value will be deducted from the final purchase price once the property is completed and ready to be delivered through the official handover date.
Step#3: Consulting with Your Developer
Conveyancers need to perform additional searches regarding a new build’s construction. This includes the proper implementation of utilities as well as approval of local restrictive covenants. It’s also important to confirm if the purchase is a freehold or leasehold and other details regarding the property.
Step#4: Overseeing a Snagging Survey
A snagging survey will ensure if the blueprints you saw during the initial purchase are implemented properly on the actual construction. For this reason, it’s necessary to include a snagging provision into your contract. Doing so will help you raise concerns for errors or defects to rectify before a sale can be made.
NHBC warranty typically covers specific structural problems on new build properties. However, depending on this warranty won’t be enough on its own. This is why you should perform an independent snagging survey. Doing so will prevent you from paying immediate repairs on an unfinished property.
Once the property is complete, an official handover of the home will commence and is arranged through your conveyancer. This includes keys, building logbooks, and other agreed-upon documents. Since dealing with new builds is a much longer process, depending on how early you secure your home, you need to find the right conveyance solicitor to stick with you in the long-term.
If you’re looking for a reliable conveyance solicitor in the UK, you’re in the right place. Even before you find the right fit, you can use our online conveyancing quotes to help you compute for your potential expenses. Contact us today once you’re ready to receive a dedicated conveyancing solicitor!