Conveyancing for New Builds vs Resale Properties: Key Differences

Buying a brand-new home feels straightforward: pristine carpets, fresh plaster, everything working as it should. But the conveyancing process for a new build is significantly different from buying a resale property — and if you go in expecting a typical transaction, you're likely to be caught off guard.

Here is what sets new build conveyancing apart, and how to navigate it.

Exchange Before Completion Is the Norm

With a resale property, exchange and completion typically happen within a few weeks of each other, once surveys, searches, and mortgage offers are in place. The property you're buying already exists.

With a new build, you are often exchanging contracts on a property that has not yet been built — or is only partially constructed. This is called exchanging off plan. The developer will require you to exchange within a tight window after reservation (typically 28 days), pay your deposit, and then wait — sometimes many months — for the property to be completed.

This creates a particular risk: if the property is not completed by the contractual longstop date and you choose (or are forced) to withdraw, recovering your deposit can require legal action. Your solicitor should scrutinise the longstop date carefully before you exchange.

The Reservation Fee and What It Does

Most new build developers charge a reservation fee — typically £500 to £2,000 — which takes the property off the market while your solicitor reviews the legal pack. This fee is usually deducted from your purchase price at completion.

The reservation fee is generally non-refundable if you choose not to proceed after the reservation agreement is signed. It does not, however, commit you legally — only exchange of contracts does that. Make sure your solicitor has reviewed the legal pack and you have a mortgage offer before exchanging, not before reserving.

Developer-Drafted Contracts: Reading the Small Print

In a resale purchase, the standard contract is negotiated between two sets of solicitors working from a broadly neutral starting point. In a new build purchase, the developer's solicitors draft the contract — and it is almost always weighted in the developer's favour.

Specific clauses to scrutinise include:

Longstop date — the latest date by which the developer must complete. Dates of 12–18 months from exchange are common. If the developer misses the longstop date, you can withdraw and recover your deposit, but lost mortgage rate locks and arranging costs are not recoverable.
Variations clause — developers routinely reserve the right to make material changes to the specification, layout, or external appearance. A well-drafted clause will cap what can be changed; a poorly drafted one gives them almost unlimited latitude.
Incentives clawback — if the developer is offering cashback, upgraded specification, or part-exchange incentives, check whether these are conditional on waiving rights you would otherwise have.
Estate management charges — many new build estates include private roads, landscaping, and amenities managed by a third-party estate management company. These charges are not subject to the same leaseholder protections as service charges. Ask for the anticipated annual charge before you exchange.

New Build Warranties and What They Cover

Most new builds come with an NHBC Buildmark warranty — or a similar product from providers such as LABC Warranty or Premier Guarantee. The standard warranty runs for 10 years and is split into two periods:

Period	Duration	Who is responsible
Builder period	Years 1-2	Developer remedies defects arising from their workmanship
Structural period	Years 3-10	Warranty provider covers major structural defects only

The builder period cover is only as good as the developer's willingness to cooperate. During years 1-2, report defects in writing to the developer as soon as you notice them. If the developer fails to remedy them, escalate to the NHBC Resolution Service — and if that fails, to the New Homes Ombudsman Service, established under the Building Safety Act 2022.

Note that the NHBC Buildmark does not cover general wear and tear, cosmetic defects, or anything that would have been apparent on a pre-completion inspection.

Leasehold New Builds: The Ground Rent and Service Charge Trap

A significant proportion of new builds — particularly flats, but also some houses — are sold as leasehold. Before exchange, your solicitor should confirm:

The ground rent position. The Leasehold Reform (Ground Rent) Act 2022 means ground rent on new residential leases must be peppercorn (zero) from 30 June 2022 onwards. Any developer still trying to charge a ground rent on a new lease is in breach of the Act.
The estimated annual service charge. Developers often quote low initial service charges and then increase them significantly in subsequent years. Ask for three years' projected accounts if available.
The lease length. Most new build flats are granted 125- or 250-year leases — both are acceptable for mortgage and resale purposes, but confirm this before exchanging.

For a broader guide to what to check before buying a leasehold flat, see Buying a Leasehold Flat UK: the Complete Checklist.

Snagging Before Legal Completion

Under the Building Safety Act 2022, buyers of new builds in England have a statutory right to a pre-completion inspection before legal completion. Use it.

A professional snagging surveyor will identify defects in a newly built home — on average, around 150 issues per property according to NHBC data, ranging from minor cosmetic items (scuffed paintwork, poorly fitted skirting) to more significant concerns (incomplete insulation, improperly fitted windows). Professional snagging surveys cost £300–£600 and are invariably worth the fee.

Submit the snagging list to the developer before completion, and request confirmation in writing that defects will be remedied. You cannot legally withhold completion while snagging is unresolved, but a written pre-completion list is strong evidence if you later need to escalate through the NHBC or the New Homes Ombudsman.