New Build Jargon
26 Apr 2024
Here at Sort Legal we aim to provide as much information as possible in the form of helpful tips and guidance.
We understand that the Conveyancing word can feel like a complicated one, especially if you’re a first-time buyer.
When purchasing a New-Build Property you may come across terms that you haven’t heard of before, this can sometimes feel a little over whelming. To help with this issue we have put together a New-Build Jargon busting list, that’s sure to help combat any confusion.
Check it out:
Buying off plan:
Buying a house or flat off-plan means buying it before it’s been built. Whilst for some this may come with risks, it isa very common practice. Many larger developers build over many years and the most desirable plots get reserved early on as people wait for their dream home to be built. The benefits of buying off-plan are that you often get to choose certain aspects of the design or pay for ‘upgraded’ items as part of the build process.
Purchasing a ready-built plot:
A large percentage of new build properties are reserved off-plan and in advance. However, there is also an option to purchase a house on a new build development that is either built or almost built. This often means that you haven’t got as much flexibility on changing design items or including upgrades but does mean the wait to completion won’t be as long as purchasing off-plan.
Part Exchange:
Some larger house developers may offer Part-Exchange for your current home. This means they’ll buy your current home from you, meaning you can get moving faster into your New Build. The benefit of part-exchange is having a guaranteed chain, no estate agent fees to pay, and you can stay in your home until your new one is ready.
Builder Incentive:
Many developers offer builder incentives. These are offers to make the purchase more appealing. They’ll include certain other aspects within the purchase price e.g., kitchen appliances, flooring, turf for the garden and some even offer to pay for legal fees or stamp duty. Whilst incentives are great, it is worth bearing in mind that these have to be declared to the mortgage lender, who have specific caps and limits on what incentives can be included.
Snag/Snagging:
Within a New Build house, a snag is a small defect or problem that you may find in your property after moving in. When you move in, you’ll have a specific process to follow in order to highlight a list of ‘snags ‘to your developer for them to correct.
1st Fix/2nd Fix:
When you are buying a New Build house off-plan, these are some of the building schedule terms that you may come across. These relate to the different build stages as part of the process.
CML Disclosure of Incentives Form:
This is a form that confirms what items are included in your purchase, including any agreed incentives. This is to ensure all information is disclosed to the lender.
Building Regulations Completion form:
This is a document that is supplied to confirm that the property has been built and signed off in line with the Building Regulations and to the correct standard.
If you’d like to learn more or you have a question, please contact one of our friendly team on:
Email: enquiries@sortlegal.co.uk
Telephone: 0333 323 1091