New Build Conveyancing

New build conveyancing is the legal process of transferring ownership of a newly constructed property from a developer to a buyer. While it follows the same broad framework as standard residential conveyancing, there are several key differences that make it more complex and, in many cases, slower than buying an existing home.

When you buy a new build, your solicitor or licensed conveyancer deals with a developer's legal team rather than an individual seller's solicitor. The contracts are drafted by the developer and tend to be longer and more one-sided. Your conveyancer needs to check planning permissions, building regulations compliance, adoption of roads and sewers by the local authority, and the terms of any new build warranty such as NHBC or Premier Guarantee.

Unlike a resale purchase where the property already exists and can be fully inspected, a new build may still be under construction at the point of exchange. This means you could be committing to a purchase months before you can move in, with your mortgage offer potentially expiring in the interim. The conveyancing process for a new build involves additional checks that do not apply to existing properties, including reviewing building warranty documentation and confirming that roads, drains and public spaces on the development will be adopted by the local council.

New build conveyancing typically costs more than standard conveyancing because of this additional legal work. Leasehold new builds, which are common with flats and some houses on managed estates, add another layer of complexity with ground rent, service charge and lease term reviews.

The differences between buying a new build and buying an existing property go beyond the age of the bricks. Your conveyancer's workload increases significantly with a new build purchase, and the risks you face as a buyer are different. Tight exchange deadlines, developer-drafted contracts and additional property checks all contribute to a more demanding transaction.

With a resale property, your solicitor reviews a standard Law Society contract prepared by the seller's solicitor. With a new build, the developer's legal team produces its own contract, often running to 50 pages or more. These contracts are typically non-negotiable and contain clauses that favour the developer, such as the right to substitute materials, alter plot layouts or delay completion without penalty.

Your conveyancer must carry out additional conveyancing searches specific to new developments. These include checking whether the development has correct planning permissions, whether roads and sewers will be adopted by the local authority, and whether any Section 106 or Community Infrastructure Levy obligations affect the property.

New build transactions also carry a tighter exchange deadline, usually 28 days from reservation, which puts pressure on both the buyer and the conveyancer to complete due diligence quickly. The table below summarises the key features of new build conveyancing.

New build conveyancing solicitors charge higher fees than they do for standard resale transactions because of the additional legal work involved. Developer contracts are longer, warranty checks add time, and the planning and adoption enquiries are unique to new developments. You should budget for the solicitor's base fee plus VAT, conveyancing disbursements such as search fees and Land Registry charges, and any new build supplement the firm applies.

The cost table below shows typical new build conveyancing fees broken down by property price band. If you are buying a leasehold new build, such as a flat or a house on a managed estate, expect to pay an additional £200 to £400 on top of the freehold fee. This covers the extra work involved in reviewing the lease terms, ground rent, service charge structure and management company details. Our guide to leasehold conveyancing covers these costs in more detail.

Some developers offer to pay your legal fees as part of an incentive package. While this can save money, the solicitor provided is usually on the developer's panel, which raises the independence concerns covered below. Always confirm whether a solicitor receives a referral fee from the developer before instructing them.

When you reserve a new build property, the developer asks you to pay a reservation fee. This is typically between £500 and £2,000, though some developers charge more for higher-value plots. The fee secures your chosen plot and takes it off the market while the new build conveyancing process progresses.

Whether your reservation fee is refundable depends on the developer and the timing of your withdrawal. Under the New Homes Quality Code, developers who are registered members must offer a cooling-off period during which you can withdraw and receive a full refund. This cooling-off period is typically 14 days from paying the reservation fee.

If you pull out after the cooling-off period but before exchange of contracts, the outcome varies. Some developers refund the fee if the withdrawal is due to a failed mortgage application or an issue uncovered during searches. Others retain it regardless of the reason. Check the reservation agreement carefully before signing, and ask your conveyancer to review it for you.

After exchange, walking away becomes far more costly. You would forfeit your full 10% deposit and could face a claim from the developer for any losses they incur, such as having to resell the property at a lower price. If the property value has dropped between exchange and completion, you are still legally obligated to complete at the agreed price.

Most new build properties in the UK come with a structural warranty that covers defects for 10 years after completion. The three main warranty providers are the NHBC (National House Building Council), Premier Guarantee and LABC Warranty. Your mortgage lender will almost certainly require a valid warranty to be in place before releasing funds.

These warranties typically operate in two stages. During the first two years, known as the builder liability period, the developer is responsible for fixing any defects that arise. From year three to year ten, the warranty provider covers structural defects such as problems with foundations, load-bearing walls, roofs and drainage. NHBC covers the widest range of issues during the builder liability period, while Premier Guarantee and LABC have slightly different terms, so your conveyancer should review the specific warranty offered on your property.

Your conveyancer checks that the warranty provider has carried out inspections at key stages of construction. NHBC, for example, inspects at foundation stage, superstructure stage and pre-completion. If inspections have been missed or certificates are incomplete, this is a red flag that your solicitor should raise before you exchange contracts.

A snagging survey is a separate inspection that identifies cosmetic and minor defects before you move in. Common snagging issues include poorly fitted doors, paint defects, unfinished grouting and minor plumbing problems. Professional snagging surveys cost between £300 and £600 depending on property size, and should be booked after the property is finished but before legal completion.

Many developers recommend a solicitor from their approved panel when you reserve a new build property. The developer may offer incentives to use their recommended firm, such as paying some or all of your legal fees. While this can seem attractive, there are considerations before accepting.

A panel solicitor handles a high volume of transactions for that developer and already knows their contract terms and documentation. This familiarity can speed up the new build conveyancing process and help you meet the 28-day exchange deadline. However, the solicitor's ongoing commercial relationship with the developer creates a potential conflict of interest. They may be less inclined to push back on unfavourable contract terms or raise difficult enquiries if doing so could affect future referrals.

An independent solicitor, chosen by you, works solely in your interest. They are more likely to challenge one-sided contract clauses, negotiate on completion timelines and flag issues with the development that a panel solicitor might overlook. The trade-off is that you pay the legal fees yourself, and the process may take slightly longer as the solicitor familiarises themselves with the developer's documentation.

Our guide on choosing a conveyancing solicitor explains what to look for when selecting your own conveyancer. If you do use the developer's recommended solicitor, ask them directly whether they receive a referral fee from the developer, as this must be disclosed under Solicitors Regulation Authority rules.

New build purchases carry specific risks that do not apply to resale properties. Understanding these before you commit can help you avoid costly surprises during the transaction.

Construction delays are the most common issue. Developers often provide estimated completion dates rather than fixed ones, and contracts typically allow the developer to delay without penalty. If your property is not finished on time, your mortgage offer may expire. Most mortgage offers are valid for six months, and if the build overruns, you will need to apply for an extension or a new mortgage application, potentially at a higher interest rate. Our guide on how long conveyancing takes explains typical timescales and how delays affect different transaction types.

A drop in property value between exchange and completion is another risk specific to new builds. Because you may exchange months before the property is ready, market conditions can shift. If your property is worth less at completion than the price you agreed, your mortgage lender may down-value it and lend less than expected. You would then need to make up the shortfall yourself or risk losing your deposit by withdrawing from the purchase.

Developer pressure to exchange quickly is also worth watching for. Some developers impose tight 28-day exchange deadlines that leave limited time for thorough legal checks. A good conveyancer will push back on unreasonable deadlines rather than rushing the process. Do not let urgency override the due diligence that protects your purchase.