How To Buy New Build
How To Buy New Build
An overview of the basics.
Clients considering buying a New Build property are often directed to use a lawyer chosen by the Builder/Seller. The law allows you to instruct a lawyer of your own choosing, not just one recommended to you by the builder/seller. We are sure that they will provide you with the approved legal advice required, yet seeking your own lawyer, independent from the builder/seller has its own benefits. Buying a new build property has its own set of legal rules. It can never hurt to seek a few legal opinions before you sign or bind yourself to any contract. Agreeing to buy a new build or signing up to a builders part exchange contract is no different.
In short, seek some advice, it only takes a few minutes to discuss and at the end of our chat if you decide to go with the builders chosen lawyer, we wish you all the best.
Although part exchange can be viewed as a process in its own right, it is basically a sale and purchase in the same contract. To this end many people can get confused.
The contract in a new build property are normally issued by the builders lawyers. They will detail the usual clauses covering what is being sold for how much and what is the remedy if the contract is breached. The date of entry will often be the date on which the property is passed as fit for habitation by the local authority. As the timing of construction is not perfect science (it can be delayed by weather, materials, construction workers etc.), the date of entry is not fixed and liable to fluctuation. You should factor these issues into your plans, especially if you are also selling your own home.
The search costs required, are dependent on the terms set down by the builder. In many cases the builders do not pay for any searches. (A fact detailed in our Guide to Conveyancing) If timed correctly, you can cut back on the costs by combining some of the searches to cover both, but you will still have to purchase the basic searches.
One of the issues your own lawyer must consider is to ensure that your builder is also bound into the transaction. Although this seems self evident, you must remember that the formal offer produced by your builder can in some cases highlight the best position for them – not you. So before you sign anything ensure that you have discussed it with your lawyer. Ensure that your own interests are covered.
The main issue for many clients is getting the statement of account as early as possible. Given the amount of incentives, builders costs and factor charges it takes time for the builder to issue a statement of account for the transaction. As such your own lawyer may not be in a position to advise you of the final bill until the builder issues their own statement which should include any additions to the specification of the property, that you have requested.