subject: The Different Information Needed When Buying Newly Built Property [print this page] When buying a new build property, there are certain things that differ from when you buy a regular property. In addition to the energy performance certificate, your solicitor should ascertain supplementary information about the land prior to the sale including:
Access - you will need appropriate access to the property and do not want to be paying towards any maintenance of roads. Normally an agreement is formed between the site developer and the local authority (under s.38 Highways Act 1980). Under this agreement the site developer is responsible for the upkeep of the estate roads' until they become adopted (maintained by public funds). The developer will usually insure against this agreement.
Planning permission - your solicitor will check that planning permission has been received for your property and find out if any conditions have been attached to this grant. If the permission has come with conditions then the developer must abide these and this must be checked upon.
Building regulations - building regulation consents need to be obtained by the developer for your property. Building regulations provide a set of standards for the construction industry to adhere to regarding the use of certain materials and the methods employed. The local authority has an unlimited retrospective time period to enforce building regulations and there can be hefty fines involved if the consents were not obtained.
What else is needed prior to the exchange of contracts?
Your conveyancing solicitor will draft a contract of sale for you. The contract should contain provisions that ensure that the property is finished to the agreed standard by completion. An example of something that is normally agreed upon between the parties is easement and covenant rights for the property. You should try to make sure that these rights incorporate; a right of way over estate roads, a right to drainage, sewerage and water and a right to use all pipes and cables for utility services.
Although not contained in the contract, the following agreements should be obtained in most cases to protect purchasers of new builds. These can be particularly relevant if buying a property off-plan:
Structural guarantees - a structural guarantee should be given by the developer and/or his building contractors. This means that if unfortunately the property suffers structural problems, you are able to seek compensation. A structural defect does not just cover the external composition, but also internal problems such as bad plasterwork and decoration.
New building insurance - such as the NHBC Buildmark scheme. Insurance of this type covers defects with the property for up to 10 years.
It is also a good idea where possible to obtain a certificate of approval from a professional supervisor present on site (such as the architect); this person should be able to guarantee the property's structural quality.
Given the differences in purchasing newly built property, it is particularly important that when choosing your conveyancing solicitors, you pick solicitors who have particular specialist experience of buying new build property.
by: Tim Bishop
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