When purchasing a new build property conveyancing, the conveyancing process differs from that of an older home, often requiring commitment before the construction is complete.
- Key steps in new build property conveyancing: understanding the process
- Securing your mortgage: key considerations in property conveyancing
Key Steps in new build property conveyancing: understanding the process
Here are the key steps:
- Pay a non-returnable fee (normally this is between £500 – £2,000) to reserve the property.
- Instruct a Conveyancer. Select a conveyancer experienced in new build purchases.
- Pay for searches. You will need to transfer an initial fee on account, typically £200-£500 to your conveyancer so they can begin the conveyancing searches.
- Conveyancing Checks. A fast-paced process that your conveyancer will carry out, typically 28 days from reservation to contract exchange.
- Pre-sign contracts. Your conveyancer will send you a contract report, containing details of the legal obligations and rights for the property as well as containing your contract and transfer for execution. Don’t worry, by signing the contract and transfer you have not legally exchanged just yet.
- Pre-Exchange Deposit Payment. Pay a 10% deposit of the property price to your conveyancer.
- Contract Exchange. Occurs within four weeks of reservation after all checks and the deposit will then be sent from your conveyancer to the developer’s conveyancer. Your signed contract will now be formally exchanged and you are now legally bound to purchase the new build property. On exchange, the developer will also give a guide on the completion date so you have an idea of how soon completion is going to take place.
- The conveyancer transfers the balance funds to the developers solicitor and keys are then handed to you
Securing your mortgage: key considerations in property conveyancing
If you need a mortgage is it important to make sure you have begun this process before you reserve the property. Firstly, you need to know you can get a mortgage for the right amount and secondly due to the quick nature of having to exchange once you reserve the property, you will need to get your mortgage offer in place as soon as possible
- Keep your mortgage offer valid as the time from exchange to completion might be lengthy based on construction times.
- If your mortgage offer expires during exchange and completion without obtaining a new one, you might risk losing your deposit.
- While your conveyancer reviews complex documents, ensure your mortgage offer and finances are ready.
For additional details on purchasing your initial home, please check our First-time buyers guide.
