New Build Conveyancing
Specialist Conveyancing When Buying a New Build Home
Buying a newly built property can be exciting, but the conveyancing process can be more complex than buying a previously owned home. Developer deadlines, lengthy legal documentation, new-build warranties and properties that may not yet be finished can all introduce additional considerations.
Our recommended conveyancers can provide specialist support throughout your new-build purchase, reviewing the legal documentation, dealing with your mortgage lender and helping you understand what you are agreeing to before you become legally committed.
We’ve done the hard work, so you don’t have to, by recommending carefully selected conveyancing firms based on service, communication, experience and professionalism.
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What Is New Build Conveyancing?
New build conveyancing is the legal process involved in buying a newly constructed property, or in some cases a property that is still being built.
The basic principles are similar to any other property purchase: your conveyancer investigates the legal title, reviews the contract, carries out searches, raises enquiries, deals with your mortgage lender and handles exchange and completion.
However, a new build purchase can involve considerably more documentation and some different risks.
Your conveyancer may need to consider the development as well as the individual property, including planning and building regulation matters, rights over estate roads and communal areas, service charge arrangements, restrictions affecting the property and the warranty or insurance arrangements applying to the new home.
If the property has not yet been completed, you may also be asked to exchange contracts months before you are able to move in.
How Is New Build Conveyancing Different?
A new build transaction can look very different from buying an established property.
Buying a Previously Owned Property |
Buying a New Build |
|---|---|
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Property is normally already complete |
Property may still be under construction |
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Completion date can often be agreed before exchange |
Completion may depend on construction being finished |
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Contract documentation relates primarily to an existing title |
Documentation may form part of a larger development |
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Existing access and services can be investigated |
New roads, services and infrastructure may still be completed or adopted |
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Established boundaries and arrangements are usually already in use |
Plans and proposed estate arrangements can be particularly important |
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Standard purchase timescales may apply |
Developers may impose a relatively short exchange deadline |
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Existing defects may be investigated through a survey |
Snagging and new-build warranty arrangements can also be relevant |
These differences are why using a conveyancer with experience of new build purchases can be particularly important.
Reserving a New Build Property
The process often begins when you choose a property and pay a reservation fee to the developer.
You will normally receive a reservation agreement setting out information about the property, the proposed purchase price and the period during which the property is reserved for you.
Developers commonly expect buyers to instruct a conveyancer and progress towards exchange within a specified period after reservation.
That can make the early stages feel considerably faster than an ordinary purchase.
As soon as you reserve, it is sensible to:
1. Instruct your conveyancer
Tell them immediately that you’re buying a new build and provide the reservation documentation.
2. Progress your mortgage application
If you need a mortgage, get the application underway promptly.
3. Provide identification and funds information
Complete your conveyancer’s onboarding requirements without unnecessary delay.
4. Tell your conveyancer about incentives
Make sure they know about any developer incentives, contributions or extras included in the deal.
5. Understand the reservation deadline
Find out when the developer expects contracts to be exchanged.
A short exchange deadline doesn’t mean the legal work should be rushed or important issues ignored. Your conveyancer still needs sufficient time and information to investigate the purchase properly.
If this is your first property purchase, our First-Time Buyer Conveyancing guide explains the wider buying process and what to expect as a first-time buyer.
Why Do Developers Want Buyers to Exchange Quickly?
Developers often sell properties while construction is still underway and want certainty that reserved plots will proceed to completion.
For that reason, a reservation agreement may specify a target date for exchange of contracts.
This creates an unusual situation for buyers: you may be expected to make a legally binding commitment to buy a property long before it is ready to live in.
Your conveyancer therefore has to carry out the necessary legal investigation within the available timescale while making sure you understand the contract and any outstanding matters.
If there is a risk that the exchange deadline cannot be met, communication between your conveyancer, the developer’s solicitor and selling agent can be particularly important.
What Does a New Build Conveyancer Check?
The legal documentation for a new development can be extensive. The exact work required depends on the property and development, but your conveyancer may need to investigate areas including:
Item |
What Your Conveyancer Checks |
|---|---|
|
Legal Title |
Your conveyancer checks that the developer has the legal right to sell the property and reviews the title affecting the development and your individual plot. |
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The Contract |
New build contracts are usually prepared by the developer’s solicitor. Your conveyancer reviews the terms and explains important obligations and restrictions before you exchange. |
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Property Plans |
The legal plan identifies the property or plot you are buying. Boundaries, parking spaces, garages, gardens and other areas included in the purchase need to be properly identified. |
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Planning & Building Regulations |
Relevant planning permissions, agreements and building regulation arrangements relating to the development may need to be considered. |
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Roads, Sewers & Services |
Your conveyancer investigates the legal arrangements affecting access, roads, drainage and other services, including arrangements for adoption or ongoing maintenance where relevant. |
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Rights & Restrictions |
The property may benefit from or be subject to rights relating to access, services and communal areas. There may also be restrictions controlling how the property can be used. |
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Warranty Arrangements |
Your conveyancer will check the relevant new-home warranty or other appropriate cover and consider the requirements of your mortgage lender. |
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Estate or Management Arrangements |
Some developments have communal areas, private roads, landscaped spaces or other facilities maintained through a management company or estate charge. |
For flats and other leasehold new builds, there will normally be additional leasehold documentation to review.
If you’re purchasing a new-build flat, our Buying a Flat Conveyancing guide explains leases, service charges, management arrangements and other issues commonly investigated when buying a flat.
New Build Legal Documents Explained
One reason new build conveyancing can feel daunting is the amount of paperwork involved.
Document or Information |
Why It Matters |
|---|---|
|
Reservation Agreement |
Records the initial reservation terms and usually sets out the proposed exchange deadline. |
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Contract |
Contains the legally binding terms governing the purchase. |
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Title Documents |
Show the developer’s ownership and legal matters affecting the land. |
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Property/Plot Plan |
Identifies the property, boundaries and other land or spaces included in the purchase. |
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Planning Documentation |
Provides relevant information about permission for the development. |
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Building Regulations Information |
Relates to compliance with applicable building requirements. |
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Management Information |
Explains arrangements and potential charges for communal or privately maintained areas. |
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New-Home Warranty |
Sets out the warranty or insurance arrangements applying to the property and may also be relevant to your mortgage lender’s requirements. |
You don’t need to interpret all of this documentation yourself. An important part of your conveyancer’s role is reviewing it and explaining the significant points to you.
Property Searches for New Build Homes
Buying a brand-new property doesn’t remove the need for appropriate property searches.
Searches provide information about matters that aren’t necessarily apparent from visiting the development or looking at the show home.
Depending on the property and location, these may include local authority, drainage and water, environmental and other appropriate searches.
With a new development, your conveyancer may also need to consider how information in the searches relates to the wider development, its infrastructure and the individual property you are purchasing.
If you are buying with a mortgage, your conveyancer must also take account of your lender’s search requirements.
Buying a New Build With a Mortgage
Mortgage finance introduces another important consideration when buying a new build.
If you exchange contracts while the property is still under construction, there can be a significant period before completion.
Mortgage offers don’t last indefinitely.
If construction takes longer than expected and your mortgage offer approaches its expiry date, you may need to speak to your lender or mortgage broker about an extension or potentially a new application.
Your conveyancer also acts for the mortgage lender where they are instructed to do so and must ensure the legal aspects of the property satisfy the lender’s requirements.
Developer incentives may also need to be disclosed to the lender because they can be relevant to the mortgage valuation and lending decision.
Developer Incentives
Developers sometimes offer incentives to encourage buyers to reserve a property.
These might include contributions towards certain costs, upgraded fixtures or fittings, cashback or other benefits.
Make sure your conveyancer and mortgage adviser or lender know about all incentives associated with the purchase.
Your mortgage lender may require information about incentives when assessing the property and mortgage, and your conveyancer may have obligations to report relevant arrangements.
Don’t assume an incentive is unimportant simply because it isn’t a direct reduction in the advertised purchase price.
Freehold and Leasehold New Builds
New build properties can be sold on different forms of tenure, and this affects the legal work required.
Freehold New Build |
Leasehold New Build |
|---|---|
|
You normally own the house and land included in the title |
You own the leasehold interest for the term of the lease |
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Estate charges may still apply on some developments |
Service charges and management arrangements commonly apply |
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Private roads or communal areas may have separate maintenance arrangements |
The lease sets out rights, restrictions and obligations |
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Covenants may control alterations or use of the property |
Your conveyancer needs to review the lease in detail |
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Management companies can still be involved |
Freeholder and managing agent arrangements may be relevant |
Don’t assume that buying a freehold new build means there can be no ongoing estate or management charges. Your conveyancer should explain any arrangements affecting the particular property.
If you’re purchasing a new-build house, our Buying a House Conveyancing guide explains the wider legal checks involved when buying a house.
New Build Estate Charges
Some modern housing developments contain roads, open spaces, play areas, drainage systems or landscaped areas that aren’t maintained entirely by the local authority or another public body.
A management company may be responsible for maintaining these areas, with homeowners required to contribute through an estate charge or similar arrangement.
Your conveyancer should investigate the legal documentation and explain:
- what areas or services are covered
- who is responsible for managing them
- how contributions are calculated
- what obligations apply to the property
- any relevant rights or restrictions contained in the documentation
This can apply even when the property itself is freehold.
Understanding these arrangements before exchange is important because the obligations may continue throughout your ownership.
New Build Warranties
Newly built homes will commonly have a structural warranty or another form of new-home warranty or insurance arrangement.
The precise cover and provider can vary between developments.
A new-build warranty should not be confused with a guarantee that nothing will ever go wrong with the property. Different elements of the cover can apply at different stages and may be subject to conditions and exclusions.
Your conveyancer’s role is primarily concerned with the legal and lender requirements surrounding the warranty. If you want to understand exactly what physical defects are covered, you should also read the warranty documentation carefully.
What Is a Long-Stop Date?
This is an important concept when buying a property that hasn’t yet been completed.
Because the exact completion date may not be known when you exchange contracts, the contract may contain a long-stop date.
Broadly, this provides an ultimate contractual date connected with completion of the property. Depending on the wording of the contract, it may give the buyer certain rights if the property has still not reached the required stage by that date.
The precise terms matter, so your conveyancer should explain how the long-stop provisions in your particular contract operate before you exchange.
This is especially important because an estimated build date and a contractual long-stop date are not necessarily the same thing.
Completion “On Notice”
When you buy a previously owned property, the buyer and seller will often agree a specific completion date before exchanging contracts.
That isn’t always possible with a new build that is still being constructed.
Instead, contracts may be exchanged with completion taking place “on notice” once the property reaches the required stage and the developer serves the relevant notice under the contract.
The buyer may then have a specified number of working days in which to complete.
This means an estimated date given by the developer should not automatically be treated as a guaranteed moving date.
Once notice is served, however, you may have a relatively short period in which to finalise your mortgage funds and moving arrangements.
What Happens if the New Build Is Delayed?
Construction dates can change.
Weather, materials, labour, utilities and other development issues can all potentially affect when a new home is ready.
If you have already exchanged contracts, a delay can create practical and financial complications. Your mortgage offer may be approaching expiry, temporary accommodation may be required and existing moving arrangements may need to change.
The contract should set out the legal arrangements governing completion, including any relevant long-stop provisions.
If your property is delayed, speak to your conveyancer and mortgage adviser promptly so you understand both the contractual position and any implications for your finance.
Snagging a New Build Property
Snagging means identifying defects, unfinished items or workmanship issues in a newly built property.
Examples might include damaged finishes, doors or windows requiring adjustment, incomplete decoration or fixtures that haven’t been installed correctly.
Snagging is different from conveyancing.
Your conveyancer deals with the legal aspects of your purchase, whereas snagging concerns the physical condition and finish of the property.
Depending on the developer and circumstances, you may be able to inspect the property or arrange a professional snagging inspection around completion. Check the developer’s procedure and take appropriate advice about when snagging can be carried out.
Don’t assume that because a property is brand new it cannot have defects.
New Build Conveyancing Timescales
There are effectively two different timescales to think about with many new build purchases.
Reservation to Exchange
This can be relatively quick because the developer may specify a target exchange period following reservation.
Exchange to Completion
This can be considerably longer if the property is still being built.
As a result, a new build transaction might involve a fast-paced legal process at the beginning followed by a lengthy wait for construction to finish.
This makes early organisation particularly important. Mortgage arrangements, legal documentation and any questions you have about the property should be dealt with as promptly as possible.
Common New Build Conveyancing Issues
New build purchases can involve issues that aren’t as common in conventional transactions.
Potential Issue |
Why It Matters |
|---|---|
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Short Exchange Deadline |
The buyer and conveyancer may need to progress the legal work quickly. |
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Construction Delays |
Completion may take place later than initially estimated. |
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Mortgage Offer Expiry |
A mortgage offer may expire before the property is ready. |
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Plan Discrepancies |
The legal plan needs to accurately identify what you are buying. |
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Estate Charges |
Freehold properties can still have ongoing management or maintenance costs. |
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Leasehold Arrangements |
Flats can involve additional lease, service charge and management documentation. |
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Developer Incentives |
Incentives may need to be disclosed to your lender. |
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Roads & Services |
Legal arrangements for adoption, access and maintenance need to be understood. |
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Warranty Requirements |
Appropriate warranty arrangements may be required, particularly by mortgage lenders. |
An experienced new build conveyancer should be familiar with these issues and know what needs to be investigated before you exchange contracts.
New Build Conveyancing: Quick Answers
Why Choosing the Right Conveyancer Matters
New build purchases can combine tight deadlines with complex legal documentation, making good communication and relevant experience particularly important.
Your conveyancer needs to investigate the development and your individual property, deal with your mortgage lender where applicable and explain the contract and legal arrangements before you become committed to the purchase.
At Trusted Conveyancers, we’ve done the hard work, so you don’t have to. Rather than spending hours comparing firms yourself, we’ve carefully assessed the conveyancing firms we recommend based on communication, service standards, transparency and professionalism, so you can choose with confidence.
New Build Experience
Experience dealing with developer contracts and new build documentation can help keep your purchase progressing.
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Communication
Regular updates and responsive client support help you stay informed throughout your property transaction.
Proactive Case Management
Good organisation and proactive communication are particularly important when working towards a developer’s deadline.
Carefully Selected Firms
Every conveyancer we recommend is assessed against our selection criteria before being included.
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