New Build Conveyancing
Buying a new build property, but want to get clued up on all things conveyancing beforehand? You’re in the right place.
While it follows a similar process to standard conveyancing in many ways, new build conveyancing can be more complex for buyers – so it’s important to understand any potential delays or fees when purchasing these types of properties.
We here at Bespoke Law Services are on hand to explain everything about conveyancing for new builds. Learn what you should expect from the process, what challenges conveyancers may face and how to choose the best new build conveyancing solicitor.
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What is Conveyancing for New Builds?
Conveyancing is a legal process that’s undertaken by conveyancers or solicitors when you buy or sell a home.
New build conveyancing follows a similar process to standard conveyancing, but transfers legal ownership of a newly constructed – or sometimes even unbuilt – property from a developer to a buyer.
It involves many of the same basic legal checks as older homes – such as registering with HM Land Registry, ID checks, raising enquiries and handling finances. However, there are extra steps, such as verifying planning permissions, securing building warranties and negotiating “off-plan” risks.
These extra steps not only make the process more complicated than standard conveyancing but can also delay the completion of the sale, which can result in higher conveyancing fees overall.
The Differences Between New Build Conveyancing & Standard
Here is a breakdown of the typical challenges, differences and queries that can delay and complicate the conveyancing process for new build solicitors and conveyancers:
How to Choose a New Build Conveyancing Solicitor
Choosing the right new build solicitor or conveyancer is an important part of the process, as it’s an expectation that the conveyancing should begin as soon as your offer is accepted.
New build completions can be stressful – developers may put unnecessary pressure on you to complete, even when there are clear conveyancing problems. However, the right conveyancing team will understand how to navigate these challenges and provide the best outcome for all parties.
That’s why, here at Bespoke Law Services, our team of expert new build conveyancers is always on hand to help. From the initial purchase all the way through to completion, we can guide you on managing the process and removing the hassle from buying a new property.
For more information about the new build conveyancing process, talk to a member of our helpful team today.
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What’s a New Build Reservation Fee?
When an offer is made on a new build, you’ll likely need to pay a reservation fee (usually from £200 to £2,000, or more on ‘high-end’ properties). This reserves the property for a set period, which is usually 28 days.
The aim is to then exchange contracts at the end of this period.
Before paying the fee, buyers should see all specification details relating to the build, such as landscape drawings and electrical plans, as it’s often non-refundable.
How Long Does Conveyancing Take on a New Build?
Every property is different, so timelines vary considerably based on location, developer demand, how complex the property chain is and how legally complex the sale is.
However, as new build conveyancing can typically be more complex than residential conveyancing, it’s estimated that it would usually take longer to complete.
Sometimes, developers may even demand a rapid 28-day turnaround to exchange contracts, but it’s not uncommon for this to be delayed significantly due to construction issues.
A new build contract should also include an anticipated date and a longstop date. This refers to the tentative date by which you can exchange the contracts, and the absolute final deadline by which the developer must finish. If they fail to meet the longstop date, you can legally withdraw and get your deposit back.
Does new build conveyancing cost more?
Usually, yes – new build conveyancing often costs more than standard conveyancing. This is because solicitors and conveyancers must carry out additional checks on planning permissions, building regulations, warranties and developer contracts.
Also, the increased complexity and tighter deadlines associated with new-build transactions can equally lead to higher legal fees.
What conveyancing fees are included when buying a new build?
New-build conveyancing fees usually include the conveyancer’s legal fee, searches, Land Registry charges, bank transfer fees and any additional work required to review the developer’s contract, planning documents and warranty information.
Learn more about conveyancing fees for all types of properties from our dedicated guide.
When do you pay your deposit on a new build property?
When an offer is made on a new build, you’ll likely need to pay a reservation fee. This is seen as an initial deposit, as it will be deducted from the final purchase price upon completion.
This reserves the property for a set period, which is usually 28 days. The aim is to then exchange contracts at the end of this period. This is when you pay your new build deposit, which is usually between 10 – 30% of the total property sale.
How long can you reserve a new build for?
Most UK developers reserve a new-build property for around 28 days, allowing buyers time to arrange a mortgage and complete the initial conveyancing process.
If contracts are not exchanged within this period, the developer may extend the reservation or remarket the property, depending on the terms of the reservation agreement.