Guide to the legal process for buying a property
Your path to ownership
After countless hours viewing properties and scrolling listings, you’ve finally found your dream home – but what happens next? The reservation process is just the beginning. At Sky-House Co., we have developed a helpful buyer guide that explores the reservation process and legal requirements, ensuring you can move into your home with the knowledge of each phase of your journey.
What does a reservation entail?
New-build developments a popular option for many. With several schemes, incentives, and other customisable capabilities on offer, future homeowners are frequently reserving plots ‘off-plan’ or before building works are complete.
A reservation agreement is a legally binding contract between a buyer and the seller, effectively taking the house off the market at a fixed price — regardless of future inflation. An upfront reservation fee is charged, and contracts are arranged between each legal party, swiftly and effectively securing your ideal home.
The reservation process and legalities
Reserving your home can be a whirlwind of emotions, from pure joy and excitement to questioning the next step and what it all means.
Timescales
Once you’re financially qualified to obtain a mortgage and a plot has been chosen, you will be sent a form that details the terms and conditions of the sale. The plot will be held for 28 days while the reservation fee is paid; a 14-day “cooling off” period allows a buyer to withdraw after setting the reservation date.
The completion date depends on the stage of your property, which the developers would approve for the buyer within the reservation agreement. For properties that have already been completed, this can be achieved in as little as 6-8 weeks.
Reservation Agreement
The reservation agreement is a contractual unity between the buyer and the developer, ensuring each party demonstrates commitment to the sale. While an agreement is not mandatory in the UK, it is a standard legal bind across new build properties, ensuring you’re protected throughout the process.
A reservation agreement typically includes details of: Reservation fee, Property value and inclusions, Reservation contract, Terms regarding breach of contract and Future use of reservation fee.
Although not an exhaustive list, a reputable solicitor and developer will review the agreement with you. This agreement is the foundation of the conveyancing process, which officially transfers the property ownership to you.
Reservation Fee
A reservation fee is standard across new-build developments. It ensures your property is removed from the market and secures the house at a fixed price for a set period. The reservation fee can vary depending on the plot, development, and house value.
The reservation fee can also be used to cover reasonable admin and legal costs, which will be deductible from your deposit on contract exchange. However, if the buyer withdraws after the 14 day cooling-off period, the reservation fee becomes non-refundable.
Conveyancer Solicitor
After the reservation fee is finalised, you will need to enlist a solicitor to convey the property in order to transfer ownership from the developers to yourself. A solicitor will act on your behalf for all legal and financial procedures, ensuring that contracts are exchanged legally.
It’s always beneficial to conduct a survey of the property and the surrounding area – often, a trusted solicitor can be recommended by the development sales team which can speed up the process.
The Snag List
Creating a snag list is essential before and after you move into your new home. It involves finding issues in the home that are covered by the new homes warranty. Every aspect of the home should be inspected on or before legal completion. Ideally the snag list would be completed at home inspection visit and submitted to the developer for rectifying before legal completion. Any damage recorded after 7 days of moving in isn’t covered by the two-year new homes warranty as it is not possible to determine how the damage was caused.
Completion
After your home personalisation choices have been installed, contracts have been exchanged, and the property passes stringent quality inspections, it’s time for a home demo. The site manager usually conducts the home demonstration, where you can raise any issues. Once the home demonstration has taken place, contracts have been exchanged and monies have been received, legal completion can take place. Your keys can then be released and we can leave you to settle into your new home.
The benefits of reserving your home off-plan
- Lock the value of your home in a dynamically priced market
- Obtain peace of mind by securing your home in a crowded housing scene
- Discover interior design options that are bespoke for your home
- Properties are chain-free and generally result in a faster completion date
- See your property be built from the start, with the ability to flag issues along the process
Reserve your dream home
At Sky-House Co., our team understands that buying a home is a significant decision, which is why our mission is to make the home-buying journey as seamless as possible. Our team strive to provide the very best for the residents in our neighbourhood, nurturing communities, and developing beautifully sustainable homes.
Our new build developments offer unique eco-friendly homes at a competitive price with differing ways to buy. If you’re a first-time buyer or looking for your next home, get in touch with a member of our friendly team and discover your perfect neighbourhood.
Choosing a Sky House really was the best decision. My Sky House is completely different to all new build homes and that's why I love it. Hassle free with all the extra details. Of course, the economic values are great but the roof terrace is the perfect touch and my favourite part.
I love the sense of space and light. I like how every part of the house has a purpose and feels different in its own right. I think one of my favourite spaces is the landing. It could easily have just been an after thought - but I like that it feels like an extra little room to sit and read or just chill in.
The houses are lovely and much higher quality finish than other new build homes.
I love the design of my new house and all its features. You definitely create attractive modern housing.
Nice developments that stand out from the usual new build sites.
