Buying a New Build Home offers many advantages, initially at least, over an older property; it's less likely to require the same level of maintenance and, in certain aspects, may well be built to a higher specifications, e.g. insulation, double glazing. If you're buying off-plan, you may also be able to choose elements of the design and construction and can often negotiate the inclusion of many fixtures and fittings that you’d need with a starter home. Finally, if you're in need of financial assistance to make the purchase, there are a range of Affordable Housing schemes to make it more affordable.
When buying a new build promotional discounts are often given to those who can swiftly move in (the developer gets their money quicker). So, with the price agreed and the property sold subject to contract, it is best to proceed with the conveyancing as quickly as possible.
Buying a new build home When you’ve found the perfect new home, great build, right location and on budget, you can happily start the buying process. This begins with making an offer and agreeing a purchase price.
Buying a new build home – conveyancing process When your offer is accepted, the property is ‘Sold Subject to Contract’ or ‘Under Offer’; which basically means that neither party is tied in and both are at liberty to pull out.
So whilst the home may not be ready for you to move into, that does not stop the matter from proceeding to exchange of Contracts on your behalf. This means that contracts are legally binding and neither party can pull out without facing serious ramifications. The process to exchange essentially involves investigating the title to the property, raising any necessary enquiries with the sellers, obtaining searches and dealing with lender requirements.
Once you are exchanged, the process to completion is somewhat simpler (especially in comparison to that to exchange!). Once the home is ready to move into, the seller can serve a “Notice to Complete” and completion then takes place within an agreed timescale (usually ten working days).
To help you better understand what really goes on, a more detailed description of the conveyancing process for buying a home follows.
Initial Analysis
The Developer will issue your lawyer with the Contract Pack. The Contract Pack is essentially the basis of the information to the property and contains the title, a copy of the proposed Contract, any additional conditions and any information about the property that the Developer believes to be pertinent. On receipt of the Contract Pack, if it does not already contain searches, they be will ordered.
Further Enquires
On receipt of the abovementioned Contract Pack your lawyer will get to work reviewing the pack and raising any necessary enquiries with the Sellers. They will also review the searches as they come back and raise any necessary enquiries off the back of the same.
Once all our enquiries have been satisfied and search results received, your lawyer will produce our Contract Report. This will explain the legalities of the transaction to you in plain English and enclose any documents they believe you might need to have sight of prior to exchange of Contracts. Enclosed with the Contract Report will be your Contract and request for your deposit (usually 5% of the purchase price).
Should you be obtaining mortgage finance, your lawyer will also report to you on the terms of the mortgage offer at this time, enclosing a copy of the mortgage deed for your signature.
If you are happy to proceed to exchange of Contracts you will return the signed Contract, mortgage deed and deposit your lawyer.
Exchange
If the property is built by the time you are ready to proceed to exchange of Contracts, your lawyer will agree a date and proceed to exchange. You will then be legally bound to the purchase and they will request the balance of funds required from yourselves and the mortgage lender where appropriate.
If the property is not yet built, your lawyer will proceed to exchange of Contracts with an estimated completion date and completion “on Notice”. The transaction becomes legally binding at this stage, as in the first scenario above. When the Notice has been received your lawyer will request the balance of funds required from yourselves and the mortgage lender where appropriate.
Once exchange has taken place we will send you the final Transfer Deed. This is the document that will transfer the ownership of the property and the land on which it is sited into your name. It will contain terms that we will have explained in our Contract Report. Your lawyer will also initiate our final Land Registry searches.
On the date of completion your lawyer will have the balance of completion monies sent over to the Sellers Solicitors to finalise the transaction.
Come Completion – you get the keys!
The conveyancing of new build properties will be performed by Taylor Rose MW Limited. Taylor Rose MW Limited is a firm of solicitors authorised and regulated by the Solicitors regulation Authority, SRA no 623604.
