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New Build Buyers GuideRG Law Sidcup5th Floor Roxby House,20-22 Station Road,Sidcup, Kent, DA15 7EJ020 8269 9901RG Law York3rd Floor, StamfordHouse, Piccadilly, York, YO1 9PP01904 234091Email: info@rglaw.co.ukwww.rglaw.co.uk

Upon your initial communication with our team, we will provide youwith a comprehensive written quote outlining our legal charges andany fees that we need to cover on your behalf throughout theprocess.After reviewing the quote, which offers an estimate of our costs andaddresses any potential questions, we ask that you initiate your fileby paying a non-refundable file opening fee. However, if you decide against moving forward with the purchase,this fee can be transferred to an alternative property.Please note: Transactions involving new builds have a 28-dayexchange deadline. As a result, our goal is to send you a priorityinstruction package within 24 hours of receiving your instructions,assuming you have not already completed this online. This package contains a client information form and our terms ofbusiness. We kindly ask you to fill out, sign, and return thesedocuments to us as promptly as possible (preferably within threebusiness days), as we cannot commence the legal work withoutthem.We appreciate yourdecision to workwith RG Law.

Once your file has been initiated, wewill promptly send an email containingyour login credentials, granting youaccess to our online case monitoringplatform. This platform allows you toconveniently check the status of yourcase.We are confident that staying informedabout your transaction's progressthrough our system will minimize theneed for phone calls to requestupdates. If you encounter any issueslogging in, the email we send you willinclude a contact number forassistance.Submitting Your InstructionPacket: You can return the instruction packetto us via email or postal mail. However,we recommend using email for a fasterresponse. Please refrain from sendingoriginal passports or driving licensesthrough the mail.Once we have confirmed that allnecessary details are in place, we willforward your case to your conveyancerto commence the legal process. Upon receiving your file, yourconveyancer will initiate anintroductory call to discuss theupcoming steps and address anyinquiries you may have. We will also supply you with theirdirect contact information, includingtheir email address and phone number.Case Monitoring:

We will conduct an online ID verification using the details yousupplied in your instruction packet. If we encounter any issues, we will request further information fromyou. To prevent confusion or delays, please include all middle namesas they appear on your passport and driving license.It is a professional requirement to have signed terms of business andconfirm our clients' identities before starting any legal work. The sooner you provide all the requested information in ourinstruction packet, the quicker we can initiate the legal process.Delaying the return of your documentation could postpone yourtransaction. In some instances, there might be discrepanciesbetween the names stored online with different agencies for identityverification. If we discover any such issue, we will contact you promptly, and inmost cases, the matter can be resolved swiftly.ID & Client Care:

For most new build propertypurchases, the builder will require anon-refundable reservation fee beforeaccepting your purchase offer. This feeis deducted from the total purchaseprice if you proceed to completion.Please inform us of the reservation feeyou have paid, so we can cross-check itagainst the data received from thebuilder's solicitors and any incentivesyou have been granted. If you areusing Help to Buy, please specify theamount you are receiving.Be aware that the risk of paying areservation fee is that you may notcomplete the transaction quicklyenough for the builder, and you couldlose the reservation fee due tocircumstances beyond your control.While we offer a quote for legal, landregistry, and search fees, acquiring anewly constructed property typicallyinvolves additional expenses. This is due to the need to examinenumerous other documents. It iscommon for the builder to charge youfor providing the necessary legalpaperwork. The fee can vary, and we willinform you of the builder's charge oncewe obtain the pertinent information. Please note that this fee is separate fromours, as it contributes to the builder'slegal costs and is not associated with ourfirm.Builder's Documentation:Reservation Fee:

Off-Plan Purchases:When purchasing a newly built property, the builder usually acceptsyour offer before the project's completion. Although the builder mayprovide an estimated completion date, this is not binding, andunforeseen delays can occur. Such delays can impact your circumstances, including the expirationof your mortgage offer or difficulties coordinating the transactionwith any related sales. We recommend discussing potential delayswith your mortgage advisor and communicating the situation to anybuyers involved in a related sale.Take note of your mortgage's expiration date and allow ample timefor adjustments. Avoid unnecessary pressure; in extreme cases, anexpired mortgage offer may lead to severe financial consequences. Buyers in a related sale may be unwilling to wait for your property'scompletion, potentially forcing you into temporary accommodation.The uncertainty of the completion date may cause stress andinconvenience.

Pressure and Deadlines:Once the builder accepts your offer, they may impose a deadline forcontract exchange, and price incentives might be tied to thisdeadline. Be aware, builders' deadlines can sometimes be unrealistic,considering the time needed to secure a mortgage and handlecomplex legal documentation. Please inform us of any deadline or incentive related to a deadline,and we will do our best to meet it or advise you to renegotiate thedeadline.Remember that the pressure builders impose can exacerbate analready stressful situation. Be cautious of unrealistic deadlines that may result in a forfeitedfinancial incentive. However, it is worth noting that such deadlines are often extended.

Demonstrate how the funds have been amassedover time. Merely showing the amount in yourbank account is insufficient; we need to see itsorigin. If you secure a mortgage, your lender will typicallyexpect the funds for the purchase to come fromyou. Lenders may accept a gifted deposit but needto know the full circumstances (as mentionedabove) and provide written permission. Furthermore, the third party contributing to thepayment might request protection through aDeclaration of Trust or other legal documents. Please notify us as early as possible to arrange theadditional work and prevent delays.During the transaction process, we will require adeposit from you before the contract exchange,followed by the remaining purchase funds andassociated costs upon completion. Unless you haveinformed us otherwise, these funds must originatefrom a UK bank account in your name. If the funds come from a third party, such as aspouse, parent, or other family members, you mustexplain how the money was accumulated overtime. This will incur an additional fee, as we willneed to perform an ID check on the individualgifting the funds and investigate their source offunds. We generally must disclose third-partypayments to your lender.Obtaining a mortgage may impact the amount youcan borrow if your lender hasn't approved third-party contributions. If you receive funds from athird party in your bank account, inform uspromptly. Provide complete details of anydonations made to your purchase by someoneother than yourself, as failing to do so may result insignificant delays or issues during the transaction.Funding Sources:

Please know that title documentation in new-buildtransactions can be more complex than instandard purchase transactions. Builders often assemble a development site frommultiple titles, producing more extensive andintricate legal title documentation.For this reason, enlisting a conveyancer familiarwith your development site is often advantageous,as their prior experience with similar paperworkcan help minimize delays. After receiving the contract documents, we mayneed to clarify certain unclear property aspectsbased on the documentation. Please be available to discuss these queries as soonas possible.Occasionally, while reviewing contract papers, wemay uncover issues with the title or covenantsrelated to the property that necessitates furtherinvestigation, potentially leading to eitherproceeding with the transaction or, in rare cases,aborting it. We will provide comprehensive information if anysuch problems arise with your purchase.We will obtain a contract package from thebuilder's conveyancer, which includes a contractand other legal documents. We will carefully review this package to ensure alldocuments are in order and align with yourinstructions. Draft Contract:Due to the recent increase in scams involving fakeconveyancer offices, we will conduct appropriatechecks to ensure that your builder's conveyanceris an adequately accredited organization.Conveyancer Verification:

This provides you with a ten-year protection against any defectiveconstruction when you purchase a newly built property. This guarantee is a legal requirement provided by the NationalHouse Building Council (NHBC) or other providers such as Zurichand Premier. It is essential to retain this document as it is necessary for any futuresale of the property before the 10th anniversary of its construction. We will ensure that it is acquired as part of the purchasedocumentation and in the correct format.Upon receiving the initial contract papers from the builder'sconveyancer, we will provide you with a preliminary report whichincludes the Land Registry documents and property plan. If there are any discrepancies in the property plan, please notify usimmediately so we can resolve any issues as soon as possible. We may have to raise additional enquiries with the builders if thereare any potential difficulties.The NHBC Guarantee:

As part of our routine procedures,we will raise some inquiries aboutthe property and informationprovided by the builder'sconveyancer. Sometimes, these inquiries mayrequire several rounds ofcorrespondence before they areresolved, but we are experienced indealing with legal difficulties such asbreaches of planning law orproblems with property ownershipor mortgages. We will keep youinformed of the reasons for any suchenquiries.We will contact you for sufficientfunds to submit a local authoritysearch, which will determinewhether any matters under thecontrol of the local authority affectyour property. Although this searchis usually clear, it may occasionallyraise further enquiries with thebuilder. We will provide you with a clearwritten report on the search results,but it is important that you makeyourself available to pay us as soonas possible to avoid any delays.Please note that the local authoritysearch only provides informationrelated to the property itself and notany neighbouring properties. If youare concerned about planningapplications regarding nearbyproperties, you may need to instructus to conduct an added specialistplanning search.Local Authority Searches:

It is crucial to review the planningpermission for new constructiontransactions carefully. This document, granted by thelocal planning authority, allowsthe builder to construct thedevelopment. Planning approvalsfor primarily built developmentscan be intricate and may imposenumerous conditions (sometimesover 30) on the builder.Additionally, builders might enterinto a Section 106 Agreement withthe local authority. This agreement obligates thebuilder to perform extra worknearby or supply a specificnumber of Affordable HousingUnits within the development. It is common for builders to beginselling properties before satisfyingall conditions. In such cases, we may requireevidence of compliance beforeproceeding with the transaction.Once the property is structurallycomplete, a Building RegulationCompletion Certificate must beprovided and issued by the localauthority's planning inspector, theNHBC, or a similar organization.Delays can occur in obtaining thisdocument, but it is necessary forthe property to be saleable and formortgage lenders to release funds.Planning Permission:

When purchasing a property with a mortgage, we will receive aformal written mortgage offer from your lender, with a matchingdocument sent to you. We will thoroughly review the mortgage offer and provide a detailedreport on its contents and any special conditions. Delays may arise inreceiving mortgage offers, and while we may face pressure from thebuilder's conveyancer to proceed, we will wait for the officialmortgage offer.If delays occur, we may ask you to contact your mortgage advisor toaddress the issue. Any discrepancies or conditions in the mortgageoffer, such as additional dampness investigations, must be resolvedpromptly.Mortgage Offer:Joint Ownership:If you are purchasing the property with another individual, we willexplain the distinct types of joint ownership. There are numerous ways to own property jointly, and we will sendyou a report on joint ownership for your consideration. After discussing the matter with all involved parties, please provideclear instructions to us.If further advice is needed, contact us promptly, as we need yourjoint ownership instructions before moving forward with theexchange of contracts. Discrepancies between joint ownership requests and mortgageoffers may require lender approval.

Once the builder's conveyancerhas addressed our inquiries, wewill compile a comprehensivereport upon receiving a localauthority search. It is crucial to thoroughly reviewour report(s), as it will providevital information about theproperty you are purchasing andany ownership-related conditions.Your report will comprisecontract documentation, amortgage report (if applicable),and new property ownershipdetails. We will email you this (oranother method upon request). You must print and sign thecontract and other relevantdocuments, have your signaturewitnessed, and send them back tous using recorded/registeredpostage.If you have any questions, it isessential to address them at thisstage, as it will be too late to do sofollowing the contract exchange,when no additional negotiationsor inquiries can be made.Purchase Report:Typically, a 10% deposit of thepurchase price is required whenpurchasing a property withoutselling one.This deposit must be paid to usas cleared funds (bank transfer),and we will transfer it to thebuilder's conveyancer once thecontracts are exchanged (seebelow). The deposit serves as contractsecurity, and if you fail to fulfilthe contract, you will forfeit thedeposit.Please note that the deposit mustoriginate from your resourcesand not from a third party unlesswe have been provided with thenecessary information (refer to"Source of Funds").When we request the deposit,please promptly transfer it to ouraccount, the details of which willbe provided. The deposit must come from theproperty buyer, not a third party(see "Source of Funds").Deposit:

While agreeing on a completion date fora fully constructed new property is likeother property purchases,complications may arise if you buy "off-plan."In "off-plan" purchases, a definitecompletion date cannot be establishedwhen exchanging contracts. Instead,the contract will stipulate thatcompletion will occur (usually) twoweeks after the property is deemedstructurally complete.This arrangement may presentchallenges, as outlined earlier in thisguide. If you are part of a transaction chain,other parties may not accept a tentativecompletion date and may require a fixeddate. This situation could lead to losing yourbuyer or being forced to complete yoursale before your new home is ready,necessitating temporary alternativeaccommodation.Maintaining communication with yourdeveloper for current estimates of whenthe property will be structurallycomplete is crucial.Discuss this with your developer orestate agent to facilitate a smoothercompletion date agreement.Agreeing on aCompletion Date:

The contract exchange occurs when you sign and return thecontract to us, along with any necessary deposit. If you are not indirect contact with your builder, we can facilitate the exchange ofcontracts on your behalf after you and your builder, or estate agents,have agreed upon a completion date. We will then engage with your builder's conveyancer to initiate theprocess.Exchanging contracts legally bind you to purchase the property, andfailure to complete the transaction may result in losing your depositand other financial repercussions. For new build transactions, thecompletion often occurs on notice, with a longstop date specified inthe contract but without a fixed completion date.As you approach the contract exchange, you must agree on asuitable completion date with your builder and inform us of theagreed-upon date. When contracts are exchanged, you will beresponsible for the property. Therefore, preparing insurance andactivating upon the contract exchange is crucial.Before the exchange, consider scheduling a final appointment toreview the property, plans, or site to ensure it meets yourexpectations. Delays and issues often arise due to disagreementsover the completion date. Although we cannot assist with thisproblem, both parties must collaborate to find a mutually agreeabledate.It can be frustrating when you and your builder have agreed upon acompletion date and are ready to exchange contracts, but otherparties in the transaction chain are not prepared. Generally, all transactions in a chain must exchange and complete onthe same day, which can lead to delays beyond your or your builder'scontrol.Regrettably, we cannot help with such issues, as they are an inherentpart of the current conveyancing system for buying and sellingproperty.Contract Exchange Process:

Occasionally, due to variousfactors like expiring mortgageoffers, it becomes necessary toperform the contract exchangeand completion on the sameday. In this case, a completiondate must be agreed uponbefore the contract exchange,and all tasks generally handledafter the exchange must becompleted beforehand.Simultaneous exchange andcompletion carry inherent risks,and we recommend avoidingthem unless necessary. The primary issue is that you'llanticipate completing thetransaction on a specific datewithout the legal protection ofan enforceable contract. If the other party or someoneelse in the chain changes theirmind, the transaction might fallthrough, and you'll only learnabout it on the proposedcompletion date. This could result in significantinconvenience and financialloss, such as removal fees. We strongly advise againstentering this arrangementunless required.Additionally, there will be extrafees for the increased workload.Simultaneous Exchangeand Completion:

If you're using a mortgage to purchase the property, we'll send youthe Mortgage Deed before completion. This formal document from your lender must be signed and returnedto us before completing the transaction. Please return this crucialdocument promptly.After the contract exchange, we will prepare a financial statementdetailing the transaction. It will include the purchase price, legal fees,stamp duty, Land Registry fees, and any credits for deposits or other paymentsand funds received from your lender. We'll send this statement toyou with a request to transfer any remaining balance to our bankaccount.If you have any questions about the financial statement, pleasecontact us immediately upon receipt. Transferring the funds quicklyis essential, as we cannot complete the transaction without them,potentially leading to significant financial losses.Mortgage Deed Signing:Financial:

If you're obtaining amortgage for the purchase,we'll need to collect thefunds from your lender. Wemust then provide thelender with a title report, adocument confirming thelegal paperwork is in orderand safe for them toproceed. The lender typically sendsthe mortgage funds to usthe day before completion.In rare instances, the lendermay have last-minuteinquiries before releasingthe funds, requiring yoururgent attention. If werequest that you contact thelender, please treat it as atop priority, as delays inreceiving mortgage fundscould jeopardize thetransaction and put yourfinances at serious risk.Occasionally, there may bedelays in receivingmortgage funds on thecompletion day, and wealways request the fundsone day in advance to avoidsuch delays. While we will follow upwith the mortgagecompany, we may also askyou to contact the lender ifthe funds are received late.Mortgage Completion:

On the completion day, we transferthe outstanding balance to yourbuilder for acquiring the property. This payment is made directly to thebuilder's legal representative viasame-day bank transfer. Uponreceiving the funds, the builder'slegal representative should contactthe builder or the builder's real estateagent to ask for the release of thekeys to you.In rare instances, delays in thetransaction chain might lead topostponed receipt of the fundsmeant for your builder. You mustkeep your phone line open for us toreach you in case of unforeseencircumstances on the completionday. If there are delays in the transactionchain, we might have to coordinateaccess for you with the builder's legalrepresentative upon completion. Ifyou face any challenges accessingthe property on the day ofcompletion, please get in touch withus immediately. Inspecting the property right beforecompletion is also advisable toensure there is no damage orvandalism.Finalizing the Purchase:Following the completion of the transaction, we will register yourtitle to the property with the Land Registry.Subsequently, we will provide you with a copy of the updated LandRegistry document, indicating you as the property owner and yourlender if you have secured a mortgage.Title Registration

Ten FAQs to ask your developer:We recognize that purchasing a new build can be a complex process.Here are ten frequently asked questions to discuss with yourdeveloper.Is the plot cost included?When considering new construction options, each plan has a basecost that covers the structure and basic interior and exteriorfeatures. Be sure to ask if the plot cost is included in the base priceand if there are premium prices for specific plots.How long will the build take?Since the building process can experience delays, getting a generalidea of the expected build time is essential. Ask if this timelineincludes obtaining permits, which could add up to 45 days.Are there warranties provided with the property?Inquire about the warranties included with the new home, such asshort-term whole-house guarantees and longer-term structuralwarranties. Ask for their respective expiration dates.What are the standard finishes?Discuss with the sales representative the standard finishes includedand any customization options. Consider your preferences forfinishes, such as carpets, countertops, and appliances.Are you allowed to buy your appliances ormaterials?Determine if the builder lets you purchase and provide yourappliances or materials. Be aware that you may be required to makesome appliance purchases.Will you get credits if you bring in your materialsor appliances?Ask if the builder offers credits for upgrades or self-purchasedmaterials or appliances. Remember that credits are not alwaysstandard and may need negotiation.Inquire about landscaping and any associated costs. Some buildersmay include essential garden work, while others might leave youwith an unfinished yard you need to landscape yourself.Is landscaping included?

Does the contract include a cost escalationclause?Avoid financial surprises by checking if the contract contains a costescalation clause, which could allow the builder to charge you forunexpected labour or material costs.Are there any homeowners' rules orregulations?Find out if there are any builder-set guidelines for the property, evenwithout a homeowner's association. This may affect your ability tocustomize your home as desired.Are there any financial incentives for using thebuilder's preferred lender?Ask if discounts on closing costs are available when using thebuilder's preferred lender. However, consult a financial advisor andshop for the best mortgage deal rather than basing your decisionsolely on a discount.We hope this list of ten frequently asked questions for new buildhomebuyers has helped guide you through the process. These questions cover plot costs, build time, warranties, finishes,purchasing materials, credits, landscaping, contract clauses, propertyguidelines, and financial incentives. By asking your developer these questions, you can ensure you arewell-informed and prepared when purchasing a new build property.Let us know if this information has been helpful to you.See what our clients are saying on Trustpilot. From here you will be able to read some of our reviews Trustpilot.See what nearly 1800 customers have said. (March 2023)We have a 5 star Trustpilot rating, our customers satare our firstpriority

Conveyancing Verification/DraftContracts9Off Plan Purchases6Funding Source8Pressure and Deadlines7NHBC Guarantee 10Local Searches11Case Monitoring/Submitting YourInstruction Pack3ID Client Care4Reservation Fees/Builders Documents5Finalising The Purchase/TitleRegistration20Planning Permission12Mortgage Offer/Joint Ownership13Purchase Report/Deposit14Contract Exchange Process16Simultaneous Exchange & Completion17Mortgage Completion19Mortgage Deed Signing/Financial18Ten FAQs To As A Developer21Trustpilot Reviews23We Appreciate 2TABLE OF CONTENTS