Buying a new-build home is an exciting prospect. There’s the appeal of a blank canvas, untouched by previous owners. You get modern fixtures, high energy efficiency, and the promise of a developer’s warranty. Perhaps best of all, you are at the top of the chain, removing the stress of a long and complex property chain.
However, this excitement can often mask a legal reality: the conveyancing process for a new-build property is fundamentally different and far more complex than for an existing home.
When you buy a ‘second-hand’ property, you are buying a known quantity. The roads are adopted, the legal boundaries are established, and the property’s history is set.
When you buy a new build, you are often buying a “product” off-plan, sometimes before the first brick has even been laid. Your solicitor’s job is not just to transfer ownership, but to investigate the entire development—from site-wide planning permissions and unfinished roads to long-term service charges that could affect you for decades.
At Gorvins Residential, we believe an informed buyer is a protected buyer. Here is our expert guide to the unique challenges of new-build conveyancing and what you need to watch out for.
1. The 28-Day Exchange Deadline: Pressure from Day One
Almost all developers will impose a strict deadline—typically just 28 days from reservation—by which you must exchange contracts. This puts buyers under immense pressure.
Exchanging contracts is the point of no return; it is the moment you are legally bound to buy the property. On a standard purchase, this only happens after all legal checks, searches, and mortgage offers are finalised.
On a new build, you are being asked to commit legally and pay a 10% deposit for a property that may not even have a roof yet. Developers do this to secure their funding and sales forecasts. This is why they will often strongly recommend you use their own panel solicitor, who is familiar with the site and can “push the sale through” quickly.
Why this is a risk: A developer’s recommended solicitor has a commercial relationship with the developer. Their primary incentive is speed. An independent solicitor, like Gorvins Residential, works only for you. Our priority is not the developer’s deadline, but ensuring your interests are fully protected, however long that takes. We are well-versed in managing developer pressure without cutting corners on your essential due diligence.
2. The Unfinished Estate: Roads, Drains, and Adoption
You’re not just buying a house; you’re buying a small part of a brand-new estate. In the early stages, the roads you drive on, the footpaths you walk on, and the sewers under your home are not yet “adopted”—meaning they are not the responsibility of the local council or water authority. They are owned by the developer.
Why this is a risk: What happens if the developer goes bust before they finish the work to the council’s required standard? In the worst-case scenario, the local residents—including you—could become legally responsible for the cost of maintaining these private roads and sewers, which can run into tens of thousands of pounds.
A specialist solicitor’s job: We meticulously investigate the legal agreements the developer has with the local authority. We check for a Section 38 Agreement (for the roads) and a Section 104 Agreement (for the sewers).
Crucially, we ensure these agreements are “bonded.” A bond is a sum of money the developer must set aside, which the council can use to finish the work if the developer defaults. You can read more about how local councils define these agreements. Without a solicitor to check these agreements, you are exposed to significant future liability.
3. Planning, Permissions, and Warranties
With an existing home, you simply check that it was built legally years ago. With a new build, your solicitor must verify the entire planning consent for the estate.
This involves checking the Section 106 Agreement, which outlines the developer’s obligations to the local community (such as contributing to new schools or healthcare). We ensure the developer is compliant and that no breaches could affect your property.
We also check that your specific plot is being built in accordance with the approved plans and has a valid New-Build Warranty. This 10-year warranty is vital, as it is your primary protection against structural defects. We will review the policy from providers like the NHBC (National House-Building Council) to ensure you understand exactly what is—and what is not—covered.
4. The “Fleecehold” Trap: Leasehold Houses and Management Fees
This is one of the biggest and most costly pitfalls in the new-build sector.
- Leasehold Houses: You may assume that a house is always sold freehold. However, a recent scandal saw many developers selling houses as leasehold, trapping buyers into paying escalating ground rents, often for no logical reason.
- “Fleecehold”: This is the new, more common trap. Your house may be freehold, but the estate is not. Communal areas like parks, playgrounds, and unadopted green spaces need to be maintained. Instead of these being handed over to the council, the developer sets up a private Estate Management Company.
As a homeowner, you are legally bound to pay an annual service charge to this company for the upkeep of the estate—forever.
Why this is a risk: Unlike leasehold service charges, these freehold management fees are often unregulated. They can be uncapped and can rise exponentially. The government-backed Leasehold Advisory Service has extensive guides on this complex issue. The management company may also charge high “permission fees” if you want to build a conservatory or even change your front door.
A specialist solicitor’s job: We read the fine print of the Transfer Deed (TP1). This document contains the covenants and charges that will bind you. We will identify these fees, advise you if they are fixed or variable, and explain your long-term obligations in plain English before you commit.
5. Completion on Notice and Snagging Lists
With a second-hand home, you agree on a fixed completion day with your seller. With a new build, you cannot.
You will “exchange on notice.” This means you are legally committed, but the final moving day is unknown. The developer will “serve notice” on you once the house is signed off by building control, giving you a set period (usually 10 working days) to complete the purchase and move in. This can make planning removals and giving notice on a rental property very difficult.
Before you complete, you will be invited to a “snagging” inspection to list any defects, from scuffed paint and loose tiles to poorly fitted doors.
Why this is a risk: Many buyers mistakenly believe they can refuse to complete if the snagging list isn’t perfect. In reality, your contract usually obliges you to complete as long as the house is legally “habitable” (i.e., it has water and power). Minor snags are not a valid legal reason to delay.
A specialist solicitor’s job: We will advise you on your precise contractual rights. We ensure the contract has fair terms and clearly outlines the developer’s responsibility to fix snags after you’ve moved in, protected by the new-build warranty.
Why Your Choice of Solicitor is Critical
The legal complexities of a new build are significant. They require a conveyancer who is not just a processor, but an investigator.
Choosing your own independent, specialist solicitor is the single most important decision you can make. It ensures you have an expert on your side, one whose only job is to protect your investment and navigate the developer’s complex legal framework.
If you are considering a new-build property, contact our expert new-build solicitor team. We have the specialist knowledge to ensure your purchase is secure, transparent, and legally sound.
