The process of buying new builds can appear complicated and daunting for a buyer. There are many matters that need to be taken into consideration and addressed. Albeit there are many lengthy title documents and information that need to be reviewed and relayed to a client, we ensure that the key information is set out in a fully comprehensive report. The main aspects of a new build transaction are outlined below.
The NHBC certificate warrants that new builds have been built to an approved standard by the developer and comes with a maximum of 10 years guarantee. Similar certificates and guarantee schemes such as Premier Guarantee and One Guarantee can also certify a new home. Some smaller developments may instead provide an ‘architect certificate’ backed by a professional indemnity insurance. We ensure that the certificate issued meets a standard criteria and is acceptable to mortgage lenders.
A Section 38 Agreement is a formal agreement made between the developer and local authority. The agreement ensures that the developer constructs the roads within the development to the correct standard enabling the local authority to adopt the road after the construction of the entire development. It is imperative that such an agreement is entered into where a local authority intends to adopt the road to avoid the buyers of the homes within the development having to cover such costs themselves.
The Section 104 Agreement is similar to a Section 38 Agreement. Such agreements impose an obligation on the developer to construct the drains to a standard so as to enable the water authority to adopt the main drains for the development.
What is a Certificate of Compliance?
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