New build conveyancing is a distinct discipline within property law that requires specialist knowledge, careful management of developer timelines, and a clear understanding of the risks that apply to buyers purchasing off-plan. Unlike second-hand purchases, new build transactions often involve a property that does not yet exist, a developer contract drafted entirely in the developer’s favour, and a completion date that is contingent on construction progress. Solicitors who do not take a specialist approach — treating the new build contract as if it were a standard residential conveyancing matter — regularly expose their clients to serious financial risk.

This guide covers the full new build conveyancing process, the key differences from second-hand transactions, the legal risks that must be addressed, and the changes introduced by the Leasehold and Freehold Reform Act 2024 that affect new build leasehold transactions in particular.

What Makes New Build Conveyancing Different?

The Property May Not Exist Yet

When a buyer reserves a new build property off-plan, the property may be months or years from completion. The buyer signs contracts based on plans, specifications, and the developer’s representations — not on a physical inspection of the finished property. This creates risks that are not present in second-hand transactions:

The finished property may not match the plans or specification
The developer may go into administration before completion
Completion may be significantly delayed
The market may change materially between reservation and completion

A solicitor acting for a new build buyer must identify and advise on all of these risks before their client commits.

The Contract Is the Developer’s Contract

In second-hand transactions, the contract is negotiated between the parties’ solicitors using the Standard Conditions of Sale as a base. In new build transactions, the developer’s solicitor prepares the contract on the developer’s standard terms, which are typically heavily weighted in the developer’s favour. Key features to watch for:

Long-stop dates: the developer’s obligation to complete by a certain date, but that date may be 18 months or more in the future, and may be subject to extension
Developer’s right to vary the specification: many developer contracts allow changes to materials, layout, or fittings without buyer consent, subject to the changes not being “material”
Price fixed at exchange: the buyer is locked into the price agreed at exchange, even if the market falls before completion
Reservation fees: typically £500–£2,000, usually non-refundable if the buyer fails to exchange within the reservation period

Exchange Deadlines

Developers typically require exchange of contracts within 28 days of issuing the contract papers. This is a substantially compressed timeline compared to the typical 8–12 week pre-exchange period in a second-hand transaction. The 28-day exchange deadline creates intense pressure on the buyer’s solicitor to:

Complete title investigation
Report to the buyer
Obtain mortgage offer (or rely on an offer already in place)
Satisfy AML requirements
Raise and resolve pre-contract enquiries

In practice, it is extremely difficult to comply with a 28-day exchange deadline properly. Solicitors must be instructed as soon as the reservation is made — not weeks later — and must chase developers’ solicitors immediately. Developers sometimes grant extensions, particularly in a slower market, but this cannot be relied upon.

Stage One: Reservation and Initial Checks

The Reservation Agreement

The buyer’s first legal commitment is the reservation agreement, signed before the solicitor is typically instructed. The reservation agreement should be reviewed by the solicitor before the client commits to it, but this rarely happens in practice because buyers often sign at the show home without taking advice. Key points to advise on retrospectively:

The reservation fee and whether it is refundable (in whole or in part)
The reservation period and the exchange deadline
Whether the price is fixed or subject to adjustment
Whether there are any conditions on the sale (for example, Help to Buy eligibility requirements, or mortgage approval conditions)

The reservation agreement is not the exchange of contracts — it does not create a binding sale agreement. However, losing the reservation fee can cause significant upset if the buyer is unable to exchange within the deadline.

Help to Buy and Other Government Schemes

Several government-backed schemes apply specifically to new build properties:

Mortgage Guarantee Scheme: provides a government guarantee to lenders offering 95% LTV mortgages on properties priced up to £600,000. Open to all buyers (not just first-time buyers) on new build and existing properties.

Shared Ownership: allows buyers to purchase a share (typically 25%–75%) of a new build (or existing) property and pay rent on the remainder, with the right to “staircase” (purchase additional shares over time). New build shared ownership leases must comply with the revised shared ownership model lease developed following the government’s 2021 shared ownership reforms.

First Homes: a scheme under which new build homes are offered to first-time buyers at a minimum 30% discount to market value, with the discount preserved in perpetuity (protecting affordability for future purchasers). The scheme has specific legal requirements for the restriction registered on the title.

The help to buy equity loan scheme (the original Help to Buy) closed to new applications in October 2022. Solicitors should be aware of existing Help to Buy charges (second charges registered in favour of Homes England) on properties being sold by first-time buyers who bought under the scheme.

Stage Two: Contract Review

What the Solicitor Must Check

The new build contract package is typically substantial — 50 to 100 pages or more. The solicitor must review and advise on:

The transfer plan and specification: does the plan accurately reflect what is being purchased? In a flat, this includes checking that the plan includes car parking, storage, and any shared garden areas that the buyer expects to have access to.

The service charge and estate charge provisions: for both leasehold and freehold new builds, the buyer may be subject to service charges (for leasehold) and/or estate charges (for freehold properties on managed estates). These must be reviewed carefully for:

The basis of calculation (fixed or variable)
The developer’s right to appoint and change the managing agent
Whether there are any cost caps
The estimated charges for the first year

The ground rent provisions: under the Leasehold Reform (Ground Rent) Act 2022, ground rents on new residential long leases granted on or after 30 June 2022 must be a peppercorn. Any new build leasehold contract that provides for a ground rent other than a peppercorn is legally non-compliant and the developer must be required to amend it before exchange.

Long-stop date and longstop triggers: what happens if the developer cannot complete by the long-stop date? Typically the buyer can rescind and recover their deposit, but not more. If the buyer has already incurred mortgage arrangement fees, survey costs, and other losses, these are typically unrecoverable.

Completion notice provisions: most developer contracts allow the developer to serve a completion notice once the property is practically complete, requiring the buyer to complete within 10–14 working days. The buyer’s solicitor must advise the client to ensure their mortgage offer will still be live at this point, and that they have made arrangements to move promptly.

Raising Pre-Contract Enquiries

Pre-contract enquiries on new build transactions typically focus on:

Whether the property will be ready by any particular date needed by the buyer
The specification in detail (finishes, appliances, glazing, insulation standards)
Whether planning permission and building regulations approval have been obtained
Whether there are any Section 106 obligations or Community Infrastructure Levy that might affect future development near the site
The developer’s arrangements for snagging and defects
The warranty provider and its terms

Structural warranty: New build properties should come with a 10-year structural warranty from a recognised provider — typically the National House Building Council (NHBC) Buildmark warranty, the Premier Guarantee, or LABC Warranty. Mortgage lenders require evidence of an acceptable warranty as a condition of the mortgage offer. The solicitor must confirm that an acceptable warranty is in place and will be issued on completion. NHBC Buildmark cover provides protection against major structural defects for 10 years, with the developer being responsible for defects in years 1–2 and the NHBC scheme covering major structural defects in years 3–10.

Stage Three: Exchange of Contracts

On a new build, exchange of contracts before the property is complete is normal. The buyer pays a deposit (typically 10%, but sometimes 5% is negotiated) on exchange and commits to complete when the developer serves the completion notice.

The solicitor must confirm before exchange:

That the buyer’s mortgage offer will remain valid until the anticipated completion date (or will be extendable)
That the buyer has sufficient funds for the deposit and for completion
That the buyer understands the risks of the period between exchange and completion (market movements, developer insolvency)
That the AML requirements have been fully complied with

Deposit Protection

In the event of developer insolvency between exchange and completion, is the buyer’s deposit protected? This depends on whether the developer has arranged deposit protection insurance. Most reputable developers provide this, but solicitors should confirm it explicitly. The Consumer Code for New Homes (which applies to most new homes registered with the main warranty schemes) requires deposit protection of up to £100,000.

Where deposit protection insurance is not in place, the buyer’s deposit is effectively unsecured, and the buyer would be an unsecured creditor in the developer’s insolvency.

Stage Four: Pre-Completion and Completion

The Snagging Inspection

Before completing, the buyer should carry out a snagging inspection — a detailed check of the property against the specification to identify any defects, incomplete work, or deviations from the agreed specification. The buyer’s right to inspect before completion should be confirmed with the developer’s solicitor.

Common snagging issues include:

Paintwork imperfections and scratches
Misaligned doors and windows
Incomplete tiling or flooring
Plumbing and heating not commissioned
Missing fixtures and fittings
External drainage and landscaping not complete

The buyer should not be pressured into completing before they are satisfied that the property is practically complete. Completing on an unfinished property and then trying to get the developer to remedy defects post-completion is a much weaker position than insisting on proper completion before the completion notice deadline.

Completion Notice and Timing

Once the developer serves the completion notice, the buyer typically has 10 working days to complete. The solicitor must:

Confirm the mortgage advance is available
Prepare the completion statement
Arrange SDLT payment (within 14 days of completion)
Obtain the official search (OS2, since this is typically a plot being carved out of a larger title)
Register the transfer and charge at HMLR within the OS2 priority period

Post-Completion: Ongoing New Build Issues

Defects Period

During the first two years after completion, the developer is responsible for remedying defects that arise. The NHBC Buildmark warranty (and equivalents) impose obligations on the developer to address reported defects. Buyers who report defects and do not receive a satisfactory response can refer disputes to the NHBC resolution service.

The Building Safety Act 2022 — passed in response to the Grenfell Tower disaster and the cladding remediation crisis — imposed new obligations on developers and building owners in relation to fire safety defects in higher-risk buildings (those over 18 metres or 7 storeys). Solicitors advising buyers of new build flats in high-rise buildings must be conversant with the Building Safety Act, the developer remediation obligations, and the implications for service charges and buildings insurance.

SDLT for New Builds

SDLT rules for new builds are the same as for second-hand properties, with one important complication: the Leasehold Reform (Ground Rent) Act 2022 affects new build leasehold transactions. Since ground rent on new leases is now a peppercorn, the SDLT calculation for rent (the NPV of rent payable over the term) results in a nil liability for most new build leasehold transactions — but this should be confirmed rather than assumed.

Obiter helps solicitors track every stage of new build transactions — from the reservation deadline to the completion notice clock — ensuring that no milestone is missed in what is one of the most time-pressured areas of conveyancing practice. With exchange deadlines, completion notice periods, and post-completion snagging communications all generating a stream of emails and actions, AI-assisted matter management makes a material difference to the quality of service delivered to new build buyers.

New Build Conveyancing: Special Considerations and Tips