Buying a new build property can be an exciting and daunting experience, especially when it comes to the exchange of contracts. It`s important to understand what this process entails and what steps you need to take to ensure a successful exchange.
Firstly, let`s start with what the exchange of contracts actually means. This is when the buyer and seller of a property exchange legally binding contracts that set out the terms of the sale. Once the contracts are exchanged, both parties are committed to the sale, and the buyer usually pays a deposit, which is typically 10% of the purchase price.
When it comes to buying a new build property, there are a few key differences in the exchange of contracts process compared to buying an older property. Firstly, the completion date is usually not fixed until a few weeks before completion, which can be nerve-wracking for buyers who need to plan their move. However, it`s important to note that the developer will usually give you at least a month`s notice of the completion date.
Another difference is that the buyer usually has to exchange contracts within 28 days of receiving the contract pack from the developer. This is known as the `reservation agreement` and sets out the terms of the sale, including any extras or upgrades that have been agreed upon. It`s important to carefully read through this agreement and seek legal advice if needed before signing and exchanging contracts.
One benefit of buying a new build property is that there is usually no chain involved, which can speed up the exchange and completion process. However, it`s still important to ensure that everything is in order and that you have all the necessary paperwork and approvals in place before exchanging contracts.
Before exchanging contracts, you should also ensure that you have the necessary funds in place to pay the deposit and complete the sale. This includes any mortgage offers, proof of funds for cash purchases, and any additional fees or charges associated with the purchase.
In summary, buying a new build property involves a slightly different exchange of contracts process compared to an older property. It`s important to carefully read through the reservation agreement, ensure that you have all the necessary paperwork and approvals in place, and have the funds available for the deposit and completion. With careful planning and preparation, you can ensure a smooth and successful exchange of contracts and move into your new home with peace of mind.