If you’re a first time buyer, the conveyancing process starts as soon as you reserve your plot, or have your offer accepted. Here’s a handy guide to the conveyancing process and what it involves when you’re buying a new build property.
You’ll need to instruct a conveyancing solicitor to handle the legal side of buying your home.
Some solicitors specialise in new build properties, because there are differences in how these type of house sales work. It’s worth doing some research before making your decision, getting recommendations or reading online reviews. If a friend or family member has bought a new build property before, ask which conveyancer they used. Your Persimmon sales advisor will also be able to recommend local conveyancing firms.
Ensure you have all your paperwork in hand before you make your offer, such as:
It’s official – you’ve had your offer accepted, and paid the reservation fee on your first home. What happens now?
Tell your conveyancer you’ve paid your reservation fee and share their details with the estate agent dealing with the sale. The conveyancer will then start the legal work.
These are the things your conveyancer needs to see:
Your solicitor usually asks you at an early stage to pay on account for the standard searches they make, such as local authority, environmental, water and drainage searches. You won’t pay the balance of your conveyancer’s fee until completion.
You’ll be sent a draft contract from your solicitor. Check all the details are correct, such as the price, the timelines – especially the ‘long-stop’ completion date – and the deposit. You’ll need to sign the contract in front of a witness and return it to the solicitor.
As you already have an Agreement in Principle in place, it’s time to get that formal mortgage application underway. We recommend using a mortgage advisor, who’ll be able to help you find the right deal.
Exchange of contracts happens much sooner for new build properties. Sometimes it can be within 28 days of reservation, so there is much more for conveyancers and buyers to do in that time. If the property searches reveal anything of note they will be flagged by your solicitor. They’ll be looking out for issues like proposed developments or environmental risks in the local area – anything which may affect residents. Some developments, such as new roads or local facilities, may be part of the scheme you are moving into, so these won’t be included in the property searches.Before exchanging contracts
Review your conveyancing searches
If the property searches reveal anything of note they will be flagged by your solicitor. They’ll be looking out for issues like proposed developments or environmental risks in the local area – anything which may affect residents. Some developments, such as new roads or local facilities, may be part of the scheme you are moving into, so these won’t be included in the property searches.
The mortgage offer you’ll receive will be valid for six months. As new build sales normally progress quickly to exchange of contracts, your mortgage offer should still be in place, but check with the lender if you can apply for an extension if the completion process takes longer than expected.
This is probably the most important part of the conveyancing process for new build properties. The contract pack not only contains the draft contract and title documents, but all the architectural and practical information about your home, including:
Arrange with your solicitor the details of when you’ll be sending them your deposit. They’ll usually request the deposit up to a week before exchange of contracts.
The time from exchange to completion is much longer for new build properties. The house is usually still under construction, so at exchange you’ll agree to a ‘long-stop’ completion date – the date when buyers can legally and without penalty withdraw from the purchase. This could be several months down the line, so some things will be different from standard property transactions.
Normally buyers have to insure the home they are buying from the day they exchange contracts. However, the good news is that for new builds, the developer insures the property while it is being built and until completion. You only need to arrange for buildings insurance from the completion date.
Your solicitor arranges all the finances – they’ll make sure the remaining balance from your mortgage provider is in place and ready to be released on the day of completion.
New build properties operate on a ‘completion on notice’ basis.
Let us explain what this means.
Once construction has finished on a property and it has been signed off by the developer, a completion notice is issued to the buyer’s solicitor. The buyer is then given up to 10 working days to complete and move in. This is the moment to confirm your booking with your removal company, if you’re using one.
From helping you with your research, to understanding more about mortgages and deposits, we’re here to make the journey to buying your first home easier.
Find out more in our First-Time Buyers Hub:
Choose your ideal location, explore our homes, and find a place you’ll love.
