The process of buying a new build property is slightly different from conveyancing of a fully built property. Conveyance of a new build property starts before the property is fully built. This means that the duration of conveyance cannot be stated as a fact. Most sellers usually give the completion date to be ten days after completion of a structure. The duration of the finalisation of the structure remains variable. The similarity between conveyances for newly built properties and that of other properties include involvement of solicitors, adherence to laws regulating soliciting, and exchange of ownership documents at the completion of conveyance.
There are four basic steps in conveyancing new build properties. These include reservation, actual conveyance, and exchange of contracts and completion of the sale. These stages of conveyance do not rigidly progress from one to the other. Some of the steps follow each other while others overlap. For example, a buyer can hire a solicitor during the reservation stage. Reservation fees can also be paid during conveyance. The stages of exchange of contracts and completion of sale are relatively fixed and rarely overlap with others.
Sale of property under construction begins with reservation. Newly built properties are usually placed in the market for sellers to see. A seller identifies a suitable property and contacts its owner. This occurs when the property is still being constructed. He can find out about the owner by calling a listed number or finding out the address of the owner of the construction company.
The buyer and seller then discuss the possibility of exchanging the property. Once they agree on the price of the property, the buyer reserves that property for himself. This involves a completion of a reservation form that states the prices of the property at the date that the buyer and seller will exchange transaction contracts. The buyer must pay a reservation fee. This fee is paid to the new developer. It is usually about £500. Termination of reservation marks the time when the property is officially removed from the market. It identifies the prospective buyer as the sole candidate to purchase the property. Reservation can be annulled if the buyer and seller fail to exchange contracts at the stipulated date. The buyer loses the reservation fee and any deposit that he may have made on the property.
Conveyance process begins after reservation of the property. Both the buyer and seller hire solicitors to help them with the conveyance. The solicitors role include researching and filing of documents related to conveyancing. Any inquiries regarding the property are raised by the solicitors. The buyer may seek financial help from mortgage lenders at this stage.
Exchange of contracts occurs after the buyer and seller have agreed on the terms of sale. The buyer must pay a deposit on the property which is usually 10% of the price of the property. The buyer is now obliged to purchase the property. Both the buyer and the seller exchange a signed agreement detailing the terms of sale. Property transaction ends with the completion of conveyance when the buyer pays the seller full value of the property. This usually happens ten days after completion of construction.