Why Is Conveyancing Different For New Build Homes?
Conveyancing is the branch of law concerned with property exchange, and conveyancing solicitors prepare the documents required to exchange property from one person to another legally. The process is different when a property is a new build – but why? Here is everything you need to know about new build conveyancing.
New Build Conveyancing Is Deadline Based
When buying a new build property, it is likely that only a show home and plans for the property have been seen. Construction might not even have started when the property is purchased. This brings a unique set of challenges.
Most house builders give just 4 weeks from reserving a property to exchanging contracts, which means that your conveyancer must work quickly to ensure that you don’t lose your reservation fee and your house.
Although the exchange of contracts must be completed quickly, often no fixed date for completion (when you can actually move into the property) is given. This is because builders have various factors to work with – such as supply of materials and weather conditions. When the property is finished, completion must take place in the timeframe set out in the contract, which is usually 10 working days. During this time, the buyer can prepare a snagging list – where any defects are documented – and the builder has time to rectify them.
The New Build Conveyancing Process
There are three stages to new build conveyancing, which your solicitor can handle for you. These are:
- Agreement Of Sale
During this stage, your conveyancer will obtain the draft contract and raise any enquiries based on the paperwork. Planning and building regulations will be checked, as well as any issues relating to drains and roads. At this point, Local Authority searches are organised, and your mortgage offer will be checked. When all of this is complete, your deposit will be requested.
- Exchange Of Contracts
When the contracts have been exchanged, your conveyancer will hand over your deposit to the seller’s solicitor and prepare the completion statement.
At this stage, the funds for the property are sent to the seller’s solicitors. You can then check for snagging items and your conveyancer will arrange your stamp duty payment (if applicable) and register your ownership of the property with the Land Registry.
Finding A New Build Conveyancer
When you decide to purchase a new build property, it is important to instruct a solicitor who is experienced in the new build process. Because it is so important for exchange of contracts and other elements of the procedure to be completed in a timely manner, finding a new build expert is the best way to ensure that everything goes smoothly. If you have never purchased a new build property before, they will also be able to advise you at every stage of the process.
At Beeston Shenton, our dedicated New Build team are skilled at dealing with this complex process, and we are recognised as one of the major property firms in Staffordshire and Cheshire for dealing with new build purchases. If you would like our help, get in touch today.