Buying a house can seem complicated and often confusing, so we have outlined the usual conveyancing process below for your reference and convenience.
Additionally Kendrick Homes have a very good working relationship with Shoosmiths, who provide the majority of their legal documentation and conveyancing. Shoosmiths are a national company and work in many legal sectors with their own informative website, with free information guides and a dedicated helpline.
Once we have agreed terms for the sale of a new house to you, confirmation is sent out to your solicitor setting out the terms of the agreement. It is then the role of our solicitor to issue the contract for sale and a pack of title information relating to the property. At this stage a deadline is usually set for when the contracts are to be exchanged.
Your solicitor will then investigate the legal title of the property which includes investigating the whole of our site and any third party rights which may affect the property. This will include your solicitor carrying out searches with the local authority. Generally your solicitors will then prepare a report on the property for you and for any bank involved in financing the purchase.
This process generally involves:
- your solicitor raising pre-contract enquiries for our solicitor to answer;
- your solicitor carrying out all appropriate searches, including title searches at the Land Registry;
- your solicitor obtaining any necessary documents and information from our solicitor that it cannot obtain from any other source; and
- your solicitor ensuring finance is available for your purchase.
With new build properties, adequate provision must be made for the grant and reservation of rights for both you and ourselves to ensure that both you and the future purchasers of surrounding plots are able to gain full access to their properties and receive and benefit from all services their property requires.
Your solicitor will then need to check that any finance is in place. If a loan is being obtained from a bank, the bank will need to be satisfied that the value of the property accords with the value and security of the mortgage being given.
Our solicitor must also ensure that a CML Disclosure of Incentives Form is completed and handed to both the valuer and the lender’s solicitor. The purpose of the form is to collate all the relevant information relating to the newly built property and the significant details of the transaction, thereby improving the flow of information to all parties.
Once the above are satisfied, both parties will formally sign and exchange contracts and you will pay a deposit to our solicitors, usually in the sum of 10% of the purchase price. At this point, we are said to be holding the property for you. You therefore have an insurable interest in the property and should insure the property from this point.
With new build properties, the date of completion varies depending upon whether or not the property has yet been built. If the property has been built, a date for completion can be mutually agreed between the parties. However, if the property has not yet been built, the date of completion will most likely be fixed for 10 days following the issue of the Certificate of Practical Completion.
The Certificate of Practical Completion is issued once the property is verified as complete, by a provider of homebuilder insurance, being either NHBC or Zurich.
Prior to completion, your solicitor will carry out the final pre-completion searches and ensure that the transfer deed is signed in readiness to complete.
On completion, your solicitor will arrange for the purchase monies to be transferred to our solicitor. Similarly, our solicitor will arrange for the transfer deed and all necessary documents relating to the property to be handed over to your solicitor for safekeeping. The legal title to the property will remain in our name until completion when your solicitor will deal with paying the stamp duty land tax due and registering the transaction at the Land Registry.
As there is no onward chain with new build properties, transactions can often be smoother and quicker than transactions involving older properties, as the parties are not dependent on other people's transactions.
Mortgage and Financial advice
We recommend Kingsland Financial for mortgages and financial advice on property purchases: