New Build Solicitors

Once contracts are exchanged, a long stop date will be agreed instead of the usual fixed completion date. The Developer will issue a notice, usually 10 working days, once the property is ready to move in to for you to complete the purchase.

A long stop date is the latest date that parties must fulfill their duties in a contract. In respect of your new build purchase, this will be the latest date that your purchase must complete, before either party can terminate the contract. The long stop date entered into your contract will be the latest date that the developers believe the property will be ready to move into. If this date passes and the property is not ready, you will usually be able to terminate your contract to purchase and the developer should return your deposit and reservation fee to you.

Typically, you will need to pay a Reservation Fee at the site office when your reserve the property. This fee will be taken off the balance due from you at completion.

When you exchange contracts you will also have to pay the developer a deposit, which is usually 10% of the purchase price. Again, the deposit paid will be deducted from the total amount owing to the developer on completion.

If you fail to complete once contracts have been exchanged, the developer will keep both your reservation fee and deposit as compensation.

If you are using a mortgage to purchase your new build property, it is important to check that the mortgage offer expiry is not before the long stop date given by the developer. If your mortgage offer is due to expire prior to the long stop date being offer then you will need to contact your mortgage advisor to ask for this to be extended prior to exchanging contracts with the developer.

If your new home is registered with the National Housebuilding Council it will come with a 10 year warranty, commonly with providers such as NHBC. The warranty stays with the property, so if you sell within the first 10 years, the warranty will pass to future owners.

The warranty is essentially an insurance policy and is put in place to protect you for any defects in the property due to faults in the design, workmanship or materials used which were undiscovered at the time of completion of your purchase.

During your first two years in the property, if there are any issues with the work carried out by the developers, they are obliged to come and fix them.

During the next 3-10 years, the developer is only responsible for major structural defects in the property.

It is therefore important you ensure all smaller defects or “snagging” issues are notified to the developer prior to the first 2 years of ownership to ensure they are dealt with.

Yes, and you should! NHBC and other warranties will not cover workmanship and quality finishes so you should consider arranging a snagging inspector to visit the property prior to completion to ensure you are happy with the condition of the property. You can then agree a snagging list with the developer to ensure all defects are dealt with during your first 2 years of ownership.

If you are selling a property to purchase your new build you should make your Buyers aware of your anticipated completion date for your new build as soon as possible. You may find that your Buyers are not prepared to wait for your new build property to be built and you may need to consider “breaking the chain”. This means that you may need to complete your sale and move into temporary accommodation while you wait for your new build property to be built.

No. We will only act for you and, if you have one, your lender. Our duty is to you, and we will report to you all our legal findings on the site. You will then be able to make an informed decision on whether you wish to proceed with your purchase.

Although we will not act for your Developer, at Goughs we have a highly experienced Plot Sales team with in-depth knowledge and experience of new build sites. Our New Build Purchase Team therefore have the benefit of being able to draw on this knowledge if we do come across any potential issues when considering the legal pack for your purchase.

You may find that your developer has a panel solicitor (or a few) which they recommend you use for your purchase.

Usually, the panel solicitors will have an agreed bundle already in place with the developer’s solicitor, which they have pre-checked for the entirety of the site. The problem here is that with only one or two firms checking the paperwork, things can get missed.

Your solicitor should be checking the contract papers to ensure they are to your favour and that you are adequately protected for your specific property, as well as checking that all requirements are in place for the development. A lawyer specifically chosen by you will be less likely to bend to time pressures of the developers and will instead take the time to ensure all paperwork has been thoroughly checked and that you are appropriately advised of all the terms of your purchase.

A local solicitor such as Goughs will also have knowledge of the development and the surrounding area, so will be in a position to provide further advice about any further developments in the area or possible issues.