Understanding the New Build Conveyancing Process

Buying a new build home differs significantly from purchasing an existing property. The new build conveyancing process typically involves tighter deadlines, additional legal checks, and a longer period between the exchange of contracts on a new build and completion. Due to these complexities, working with experienced new build conveyancing solicitors is essential.

The key stages of buying a new build home include:

  1. Reservation Agreement – Paying a deposit to secure the property.
  2. Exchange of Contracts – Committing to the purchase, often months before the property is built.
  3. Completion – Transferring ownership upon property completion and developer sign-off.

While the process may seem straightforward, several issues can arise between new build exchange and completion that buyers should be aware of.

Common Problems Between Exchange and Completion on New Builds

1. Delays in Construction

One of the most common issues with new builds is construction delays. Developers provide an estimated completion date, but bad weather, supply chain issues, or labour shortages can push back timelines. If you are simultaneously selling your current home, delays can cause complications with aligning your transactions. If delays extend beyond the long-stop date agreed upon in the contract, buyers may have the right to pull out and reclaim their deposit.

How to mitigate this:

  • Your new build conveyancing solicitor will advise on and negotiate a suitable long-stop date.
  • Keep in regular contact with the developer for updates.
  • Discuss the impact on your sale transaction with your conveyancing solicitor and consider keeping your agent and buyer updated.

2. Mortgage Offer Expiry

Many mortgage offers are only valid for six months, and if a new build’s completion is delayed beyond this, buyers may need to reapply. Interest rates or lending criteria might have changed, potentially affecting affordability.

How to mitigate this:

  • Choose a lender that offers longer mortgage validity.
  • Speak to your mortgage broker or lender early if delays seem likely.
  • Consider requesting an extension from your lender if necessary.

3. Issues with Snagging and Build Quality

Unlike existing homes, new builds can have snagging issues such as poor finishes or faulty plumbing. Identifying and resolving these before completion can prevent costly repairs later.

How to mitigate this:

  • Arrange a professional snagging survey before completion.
  • Report all defects in writing to the developer under the warranty terms.
  • Your new build conveyancing solicitor can advise on any defect liability clauses in your contract.

4. Changes to Developer Plans

Developers sometimes make alterations to layouts, materials, or fixtures without prior approval from buyers. These changes might impact the suitability of the property, or in exceptional cases even the property value.

How to mitigate this:

  • Your new build conveyancing solicitor can advise on the acceptable changes specified in your contract.
  • Request updates from the developer and query any discrepancies.
  • Speak to your new build solicitor if significant changes affect the property’s desirability.

5. Delays in Legal Paperwork

Issues such as incomplete warranties, unclear leasehold agreements, or unregistered land can slow down completion. An experienced new build conveyancing solicitor will check for these issues before exchange, but delays can still occur.

How to mitigate this:

  • Choose a solicitor who specialises in new builds.
  • Your new build solicitor will ensure that all warranties, planning permissions, and lease details are in order.
  • Ensure Help to Buy or shared ownership paperwork (if applicable) is completed promptly.

6. Developer Insolvency

If the developer becomes insolvent before completion, buyers could face uncertainty about whether their home will be finished. In such cases, deposit protection and contract terms become crucial.

How to mitigate this:

  • Your new build solicitor will ensure that your deposit is protected under the NHBC or similar scheme.
  • Your new build conveyancing solicitor can advise on contractual protections against developer insolvency.
  • Research the financial stability of the developer before committing.

How to Limit Disruption Between Exchange and Completion

Work with Specialist New Build Conveyancing Solicitors

A solicitor experienced in new build conveyancing can pre-empt potential problems, ensuring that contract terms protect your interests and legal requirements are met before exchange.

Stay Proactive and Communicate

Regularly check in with your solicitor, developer, and mortgage provider to keep updated on progress and resolve any emerging issues quickly.

Be Financially Prepared

It may be prudent to have contingency funds available for unexpected costs such as mortgage reapplications, temporary accommodation, or legal fees associated with delays.

Conclusion

The period between exchange and completion on a new build presents several potential risks, from construction delays to mortgage complications. However, by staying informed, working with experienced new build conveyancing solicitors that proactively manage each stage of the new build conveyancing process, buyers can minimise disruptions and enjoy a smoother transition into their new home.

The content of our site is provided for general information purposes only and does not constitute legal or other professional advice.