Buying a New Build Property

If the property you are buying is in the course of construction or is newly built there are some additional matters to consider beyond those mentioned on our section of purchases as the process for a new build has significant differences. So, contact one of our expert property lawyers on 0800 103 2600 or complete an enquiry form and we will call you back. 

Our specialist team will be able to guide you through the entire process but here are some of the questions we are often asked:

• What is the consumer code?

  The Consumer Code for New Homes, approved by the Chartered Trading Standards Institute, is a mandatory Code for Members which has been established to ensure that best practice is followed by registered Developers in respect of the marketing and selling of New Homes to consumers, and also sets expected standards for after-sales customer care service. You should check whether the builder you are considering buying from subscribes to the code.

• What is a new build warranty?

  It is normal for a builder to provide a 10 year insurance backed warranty to the buyer when selling a new dwelling. Lenders require a warranty so if a dwelling is built without one it will not be possible to obtain a mortgage which it turn will make it difficult to sell and will affect its value. Furthermore, not all warranties are the same and as a consequence some are more acceptable to the lending industry than others. That again affects marketability and value. It should be possible to pass the benefit of the warranty on to future owners during the warranty period. We can advise you on the acceptability to lenders of different warranty providers.

• What is the NHBC?

  The National House Builders Registration Council is the leading warranty and insurance provider for UK house-building for new homes. As a non-profit distributing company limited by guarantee, its stated purpose is to give homeowners confidence in the quality of new homes. Established in 1936, NHBC insures over 1.5 million homes, with a new home warranty market share of approximately 80%.

  NHBC is an insurer, authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

  Now known simply as ‘NHBC’, according to its website around 10,000 builders and developers choose to register with the NHBC each year so that they can offer its Buildmark warranty and insurance cover on the new homes they build. NHBC provides builders with technical support and assistance to help at every stage of development, from land buying, design and build, through to customer handover.

• Will I be given a fixed completion date?

  As agreeing to a fixed contractual completion date would be a legal commitment with financial implications a builder will only usually agree to a fixed date if the dwelling is practically complete in all respects and ready for handover. Otherwise a builder will usually propose that the completion date is say 10 working days after the builder serves a formal written Notice containing a Certificate of Practical Completion to the effect that the dwelling is ready for occupation.

• What is a target date?

  Under the Code if a builder does not offer a fixed date the builder should offer a Target date which is the date by which the builder anticipates that it will serve the Certificate of Practical Completion. The builder should use reasonable endeavours to keep you informed of the likely Practical Completion Date in accordance with the Consumer Code.

• What is snagging?

  Once Notice of Practical Completion is served you should arranged for the dwelling to be inspected and a snagging list prepared identifying anything that is unsatisfactory and needs remediation or needs finishing. You might deal with this personally or you could pay a surveyor to undertake the snagging and provide a written report for you and the builder.

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