It is common practice for developers or housing associations to request an exchange of contracts on new build properties before they are fully constructed. This is typically done to secure the sale, providing certainty for both the buyer and the developer.

For the developer, early exchanges can help fund the ongoing construction, while for buyers, it locks in the purchase price, protecting them from any future price increases.

You can request updates on the construction timeline and seek clarification on any delays before deciding whether to proceed. Additionally, your legal representation should ensure that the contract includes provisions that protect you in case of extended delays or significant issues with the build.

The 5% deposit is an exchange deposit, which is often agreed upon between the parties at the time of the exchange of contracts. However, it is common practice for the contract to state a 10% deposit as the standard amount required upon exchange of contracts in property transactions.

In your case, while you are paying a 5% deposit, the contract may still state 10% because, in the event of a default, the seller has the right to claim the remaining 5% to make up the full 10%. This provides the seller with a form of security. However, as long as both parties have agreed to the 5% deposit, there is usually no issue, but it is important to ensure this is clearly documented and agreed upon in writing.

If you are paying more than a 10% deposit, the initial amount (typically 10% of the purchase price) is usually paid upon the exchange of contracts. The remaining balance of your deposit will be due on the completion date, which is when the final transfer of ownership takes place, and the remaining purchase price is paid to the seller.

The reason we do not require the full deposit amount now is that the standard practice in UK property transactions is to secure the agreement with a 10% deposit at the exchange of contracts. This initial deposit serves as a commitment to the purchase, binding both parties to the contract. The remainder is not required until completion because it aligns with the legal process of transferring ownership and helps to ensure all parties are ready to finalize the transaction on the agreed date.

You will typically receive your completion statement a few days before the completion date. This document provides a detailed breakdown of all the costs and payments related to your purchase, including the final balance required to complete the transaction.

The timing of the completion statement depends on when all the figures are confirmed, including any adjustments for things like apportionments of service charges, ground rent, or any other fees. Rest assured, we will provide you with the statement as soon as all the necessary details have been finalised and the statement from the Housing Association’s solicitors has been received.

We require detailed information about your funds to comply with UK anti-money laundering (AML) regulations. These regulations are in place to prevent the use of illegal funds in property transactions. As part of our legal obligations, we must verify that the money used to purchase the property comes from legitimate sources.

To meet these requirements, we typically ask for the following documents:

1. Bank Statements – Recent statements showing the funds available for the purchase, usually covering the last 3-6 months.
2. Evidence of Savings or Investments – If the funds are coming from savings, investments, or the sale of another property, documentation proving this source (e.g., savings account statements, investment portfolio statements, or completion statements from the sale of property).
3. Gift Letters – If any part of the funds is a gift from family or friends, a formal gift letter confirming that the money is a gift and not a loan. We will also require their identification.
4. Mortgage Offer – If you are using a mortgage, the official mortgage offer from your lender.

Additional documentation may be required depending on the source of your funds. This process is standard for all property transactions in the UK, and providing this information upfront helps to avoid delays in the conveyancing process.

Stamp Duty Land Tax (SDLT) is a tax that you are required to pay when you buy a property or a piece of land that exceeds the current threshold. SDLT must be paid to HMRC within 14 days of completion, however, we must hold funds to cover the SDLT on completion so that we as your acting conveyancer can submit the SDLT return to HMRC on your behalf.

If you require your application to HM Land Registry to be expedited due to a change in circumstances, you will be required to pay our expedite fee of a minimum of £90+VAT. Your case handler will be able to provide you with further clarification once you have notified us of your change in circumstance.

Following completion of your purchase and receipt of all signed legal documentation, our post-completion department will apply to register both you and your property at HM Land Registry (HMLR). In accordance with HMLR’s current guidance, we can expect to receive confirmation of registration from anywhere between 6 and 24 months depending on the nature of the transaction. Your case handler will be able to provide you with further clarification throughout the course of your transaction.

A new build warranty is typically issued to cover you for the cost of fixing structural defects caused by design problems, faulty materials or poor workmanship during construction. We as your acting conveyancer will obtain copies of the policy documentation from the Warranty Provider and provide you with copies of the same following completion.

To proceed with exchanging contracts, we will need the following:

1. Signed Contract, Lease and Plan (if applicable): All purchasers must sign the contract.
2. Deposit Funds: The deposit (typically 10% of the purchase price, or as agreed) must be transferred to us in cleared funds before we can exchange contracts.
3. Mortgage Offer(if applicable): If you are using a mortgage to purchase the property, we will need to have received a formal mortgage offer from your lender and reviewed its terms to ensure everything is in order. We will also require the signed Mortgage Deed.
4. Search Results: All property searches (such as local authority, environmental, and water and drainage searches) should be completed and reviewed. Any queries or concerns arising from these searches should be resolved.
5. Enquiries Answered: Any enquiries that we or you have raised about the property with the seller should be fully answered.
6. Agreement on Completion Date: Both parties must agree on a mutually acceptable completion date, which will be specified in the contract.