Buying a new build follows the same legal path as any purchase in England, but it has extra stages and extra protections. You usually reserve first, sign a contract later, and sometimes wait for the home to be finished. The New Homes Quality Code sets the minimum a registered developer must do at each stage, so it is a useful map of what to expect.
1. Agree your finances and pick a plot
Get a mortgage agreement in principle and a clear figure for your deposit, legal fees and stamp duty before you reserve. If a developer offers an incentive, tell your broker straight away, because lenders may limit how much of the price a seller can contribute.
Some developers take a small fee to register early interest before plots are released. Under the Code that fee is capped at £150, the developer must say how long you have to accept and how long you have to cancel for a full refund, and you can cancel within 24 hours of being told the plot is released, or in any longer period the developer stated. After that the developer may deduct administration costs, only if it explained that when you paid.
2. Reserve the home
A reservation takes the plot off the market while your legal work and mortgage are arranged. Under the Code you must sign a written reservation agreement, in person or digitally, and receive a copy. The developer must not ask you to sign it until it has given the pre-contract information, and it must set out the price, how long the price and agreement last, the plot and address, the warranty provider, and the fee and refund terms.
The agreement must include a 14-day cooling-off period in which you can cancel for any reason and get the full reservation fee back. While it is valid, the developer cannot cancel it or sell the same home to someone else. In England, Wales and Northern Ireland it should be marked subject to contract, which means neither side is bound to buy or sell until contracts are exchanged.
3. Instruct your solicitor and apply for the mortgage
Your solicitor receives the contract, the pre-contract information and the warranty details. They check the title and the plans, look at any restrictions, explain the charges, and ask the developer questions on your behalf. Your lender will value the home and make a formal offer. Both take time, so do not assume the first date mentioned will hold.
Deposits and fees paid to a developer should be protected, for example through a warranty provider’s cover or a client account the developer cannot withdraw from before completion. Ask your solicitor to confirm how yours is protected before money moves.
4. Exchange contracts
Exchange is the point at which both sides become legally committed. The Code expects the exchange date to be at least six weeks after reservation, which is 28 days plus the 14-day cooling-off period, unless you ask for an earlier date. Exchange or completion inside the cooling-off period needs your express consent.
The contract of sale must be in plain language, state the notice period for completion, explain when you can cancel and how deposits are protected, and give a two-year builder’s liability period. If something major about the home changes after reservation, such as its size, appearance, value or layout, the developer must tell you in writing, and you can cancel within 14 days of the notice and receive a full refund.
5. The notice to complete, and your inspection
When the home is finished, the developer serves a notice to complete. The notice period is usually at least 14 calendar days. In that window you can inspect the home or send a qualified inspector, using the official checklist. Our snagging guide covers what to look for and what the warranty requires you to report quickly.
Before completion the home must be finished for its intended purpose, with a safe entrance and exits, meet building regulations and have a warranty in place. The developer should carry out its own final inspection, give you a Schedule of Incomplete Work for the home with a timetable for anything outstanding, and show you how the appliances and systems work.
6. Completion and the handover pack
On completion day your solicitor sends the money, the developer releases the keys, and you also pay any stamp duty through your solicitor. At handover you should receive the guarantees for the home and appliances, the warranty certificate or cover note with its limits and excesses, the developer’s complaints procedure, and the building regulations completion certificate, or details of when it will be issued. For apartments, the health and safety file goes to the managing agent.
From completion you have a two-year builder’s liability period. If you have a problem, report it in writing and keep the evidence. A registered developer’s after-sales service and the New Homes Ombudsman Service are covered in our guide on snagging and handover.
What to know
- A reservation is not a purchase. The contract is not binding until exchange, and you can cancel in the 14-day cooling-off period.
- Exchange should be at least six weeks after reservation unless you ask for earlier.
- Notice to complete is usually at least 14 calendar days, and you can inspect the home within it.
- Expect a handover pack that includes the warranty, the complaints procedure and the building regulations certificate.
- A registered developer owes you a two-year builder’s liability period after completion.
Questions to ask the developer
- What does the reservation fee cover, and how much is refundable after the cooling-off period?
- How is my deposit protected before completion?
- What is the expected completion date, and what happens if it is late?
- What will I receive in the handover pack, and when will the building regulations certificate arrive?
Sources
General information only, not financial or legal advice. Rules and offers change, so check the sources and your own adviser before you rely on a figure.