New Build

Many people assume the conveyancing process of buying a new build property is more straightforward – but this is not the case. It can, in fact, be a more complex transaction and requires experienced, expert property solicitors to hit all the deadlines involved.

The process can be more intense as buyers are expected to exchange contracts quickly to secure the property, particularly in a competitive market. Experienced solicitors can ensure all legal processes have been completed thoroughly and properly.

Added complexities

When buying new build, you usually commit to buying a property that is in the process of being built – or perhaps work hasn’t even begun. There is, therefore, a risk of something going wrong during the build process, including:

• Non-compliance with planning regulations.
• Failure to arrange NHBC inspections.
• Failure to complete agreements for roads and sewers.
• Homes being built not in accordance with the original plans.
• Extreme weather or material shortages delaying the build.

At ORJ, we have licensed conveyancers who are experienced in the nuances of new builds. Knowing the potential pitfalls, we can put measures in place to protect your deposit and insist on a long-stop completion date, which compels the developer to have your property completed by an agreed time. If the developer fails to meet this date, the buyer has the right to cancel the contract and to demand the return of their deposit.

Developers will often rush the completion date to maximise profits and to hit sales targets. While you will be keen to get the keys, it is important you have a solicitor that fights your corner and ensures the transaction is legally sound before completion.

It is also important to ensure your mortgage offer lasts long enough to cover the build time of your property.

Essential checks for new builds

• Checking Planning Permission: We will ensure the property has been built in accordance with planning permissions, including drains and utilities and roads.

• Uncovering any restrictive covenants: New builds can include restrictive covenants which typically prevent you from making alterations to the property, such as an extension. It could also ban you from installing a satellite dish or keeping a trade van or a motorhome on your driveway, for example. It’s important you know what you are signing up to.

We work closely with the purchaser and the housebuilder to ensure a speedy and successful outcome.

We are one of the largest conveyancing practices in the region. All our clients benefit from dealing with a dedicated team who can meet you on-site or at our offices in Stafford, Telford and Birmingham. We are CQS accredited, members of the Help to Buy panel and also recognised by all major mortgage lender panels, which ensures a smooth transaction.

New Purchase

Once you have accepted our transparent conveyancing fees and confirmed that you would like us to act on your behalf, a welcome pack is issued which contains:

Client care letter

This explains the process that will follow, right from day one to the handover of keys.

Stamp Duty questionnaire

This will help us to identify whether you are liable to pay any Stamp Duty Land Tax (SDLT), pay higher rate SDLT, or whether you qualify for the first time buyers’ relief.

Source of funds questionnaire/declaration

This will help us to confirm where you have obtained your funds from. We carry out the necessary source of funds checks in order to comply with Money Laundering Regulations.

The next steps

• We request certified copies of your ID so that we can comply with Money Laundering Regulations. Electronic Anti-Money Laundering (AML) ID checks will be carried out against each client once the paperwork has been returned.

• We ask you to pay an initial £350 to cover searches.

• In order to comply with GDPR, we ask that you provide us with consent to liaise with the developer in order to discuss the progress of your plot.

• If you are buying a new build, the developer/developer’s solicitor will normally issue us with a copy of the reservation form. Upon receipt we will check the exchange deadline, anticipated legal completion date (ALCD), examine incentives and submit searches.

• If the matter is proceeding under the Help to Buy scheme or Forces Help to Buy, there will be additional paperwork required in order to proceed.

• If you are using a Help to Buy ISA then the developer may agree a reduced deposit on exchange of contracts as the ISA Bonus is not available until completion. You will be required to complete a first-time buyer declaration.

New Sale

If you have an existing residential property to sell, then our specialist conveyancing team have a wealth of experience and are well versed in working to tight deadlines while, at the same time, ensuring that the conveyancing for the sale of any existing property also progresses efficiently.

If you are part-exchanging your existing home with the builder, this can often be as complex as any home buying process. The builder’s solicitors must ensure that all legal aspects of the property are in order, because the builder will then be re-selling a residential property of which they have no personal knowledge.  We are experienced in the unique requirements that part-exchange transactions bring, and we therefore offer a comprehensive advice package.

Appointing experienced conveyancers is crucial when buying a new build property. Trust ORJ. Contact us on 01785 223440 or team@orj.co.uk