Buying a new property/NHBC Buildmark Cover

BUYING A NEW PROPERTY

The purchase of a newly-built property is a completely different experience than dealing with the conveyance of an existing property.  We at Armitage Sykes have specialist lawyers who are experienced and familiar with the procedure and legal documentation associated with a new build.  Via our Case Management System and Internet based case tracking systems we are able to ensure that the transaction proceeds speedily so that any reservation deadlines set by the Builders are met.  All our searches are processed on-line to reduce delays.  These are some of the matters which need to be considered when buying a newly built property.

1.  Planning Permission
Your property lawyer needs to check that planning permission has been granted and also whether the planning conditions have been or will be complied with.

2.  Building Regulation Consent
The Building Regulations control the method and materials to be used in the construction of the property.  Your property lawyer needs to check that proper consent has been granted by the Council.  The lack of building regulation consent may suggest that the building has not been constructed to proper standards.

3.  Structural Guarantee
It is important that some form of structural guarantee is offered when you purchase the property.   Without this you will not be able to secure a mortgage.  Also, if at a later date any structural defects develop, you may not be able to obtain compensation from the Builder who may no longer be in business; a structural guarantee from an independent third party such as the NHBC is thus essential and will inevitably be a condition of your mortgage.

4.  NHBC Buildmark Scheme
This provides a two-part guarantee:

1. The developer agrees to be responsible to remedy all defects which occur within 2 years of purchase.  In case of default the NHBC will itself step in.
2. After the first 2 years the NHBC provides an insurance-style guarantee that will rectify structural defects arising in the house during the next 8 years.  Structural defects are defined to exclude, for example, defective plasterwork and decoration.

It is essential when buying a new property that your property lawyer checks:

1. that there is a term in the contract indicating the Builder is registered with NHBC and will continue to be so until completion;
2. that on exchange the builder will offer to enter into a 10 year guarantee;
3. that despite the above contractual terms the Builder Developer is actually registered with the NHBC.

5.  Estate Roads
The roads serving the property will be new and are unlikely to yet be the responsibility of the local authority.  It is important therefore that your property lawyer checks that there is a binding legal agreement in place to ensure the Local Authority will adopt the road in the future, or alternatively that the Local Authority have already agreed to maintain the road otherwise you may be liable for road charges in the future.