Buying a home is perhaps the most important purchase you will ever make and the Sandersons Land & New homes Team will offer you all the support you need throughout the purchase process.
There are 4 key stages in buying a new build home:
When you have chosen your property, you will usually need to complete a reservation form. This will clearly set out the agreed price for the property and the time by which contracts must be exchanged. The reservation will also be subject to paying a reservation fee, at which point the chosen property will usually be removed from the market and a period of exclusivity granted. However, if you fail to exchange contracts within the stipulated time frame the property may go back onto the market and you may lose your deposit and incurred costs, such as legal fees.
Ensure you have received a copy of the Consumer Code for Home Builders, as this sets the mandatory requirements that all Home Builders must meet in their marketing and selling of New Homes and their after-sales customer service. It also sets out the terms by which any deposit will be held.
NB. This assumes a 28 day exchange deadline
During the reservation period, your solicitor would have undertaken the entire necessary due diligence to enable you to be in a position to formally exchange contracts. When all parties are happy with the agreements, the contracts can be formally exchanged at which time you will sign the contract and pay the deposit, which is usually 10% of the purchase price. After exchange of contracts you are legally bound to purchase the property.
At the time the initial reservation deposit is paid, an approximate completion date will have been given. This is often nothing more than a season in a given year (ie. summer/autumn) or an approximate date in the future. Depending on the timescale of the development, you may receive a revised target date for completion after exchange of contracts.
You will be served with a completion notice via your solicitor which will formalise the date you will be expected to complete. The period of time between this notice and your completion date will have been set at exchange of contracts.
During this period you will need to: