New Build Properties

From a legal perspective, purchasing a new build home (or a home that is in the process of construction) is different to the purchase of a second-hand property. Some of the key differences between new build conveyancing and standard residential conveyancing include the following:

• Building Agreement and Contract for Sale – When purchasing a new build property, you will need your solicitor to review the Building Agreement; the agreement between you and the building developer to build your home in accordance with the plans. You will also need them to review the Contract for Sale, which is the agreement for the transfer of the site to you. In standard residential conveyancing, only the latter is required.
• Stages of Payment – Payments for new builds are often made in stages, particularly if the property is being purchased off-plan (before construction is complete). An initial booking deposit is followed by a contract deposit, with the balance due upon completion. Your solicitor will handle deposit payments to the builder’s solicitor; however, this doesn’t automatically protect you in the event of the builder going into liquidation. For protection on this front, it’s important to ensure the builder is registered with HomeBond.
• Completion Times – With standard residential conveyancing, the completion date is usually specified in the contract. With new builds, however, completion can be uncertain, especially if purchasing off-plan. Delays may occur due to construction, planning permissions, or other unforeseen issues. An experienced new build conveyancing solicitor can help you to foresee and minimise the impact of planning issues.
• Searches and Title – When purchasing a second-hand home, there may be a more extensive conveyancing history which will involve searches to ensure there are no issues with the title, rights of way, or any other encumbrances. Whilst new builds do not have such extensive histories, your solicitor still needs to ensure planning permissions and building regulations have been adhered to.
• Snag Lists – Before completion, buyers usually prepare a ‘snag list’ of minor defects or unfinished work that the developer must address before the final handover. When purchasing a second-hand home, there is no snag list. Instead, any issues or defects must be identified before the purchase, typically during the structural survey.
• Services and Common Areas – When purchasing a new build, your solicitor will need to check that the Building Agreement includes an “Indemnity Under Seal”, a commitment on behalf of the builder to ensure that roads, sewers, pathways, and communal areas are correctly managed and implemented in line with local authority standards. This is an issue that does not often need to be addressed when purchasing a second-hand home.

These are just a handful of the key areas where the conveyancing team at McCarthy + Co provides expert guidance to clients considering purchasing a new build property. If you are considering purchasing a new build and you require further guidance, our team will be happy to assist you. Complete our highly confidential Property Consultation Request and we will get back to you as soon as we can.