The Journey of buying a New Build Home in 2020
Buying a New Build in 2020
If you are considering buying a new build house from plans in 2020 there are a number of key points you need to know –
- 1.Contract Documents – When buying a new house you will generally sign two contracts – one for the purchase of the land the house is being built upon and one to engage the builder to build the house
- 2.Guarantees – Most new homes come with a structural guarantee. Homebond is the most common structural guarantee however there are a number of other companies with similar products also. Always ensure your new home has a structural guarantee.
- 3.Roads and public services – Always make sure you are aware who will own and maintain the roadway outside your new home. Also be aware as to who is responsible for the public lighting, footpaths and green areas. Many new developments now also come with playgrounds, creche facilities etc. Ensure you find out who will look after these new facilities.
- 4.Stamp Duty – all residential properties have a 1% of the purchase price stamp duty levy to be charged on the closing of the sale. However new homes are slightly different as you only pay 1% on the purchase price less any VAT on the building agreement.
- 5.Unfair Contract terms – Ensure you read the contracts in full and ask your legal advisors if there are any unfair terms in the contracts. Building Agreements can have many terms which may seem unfair to you however there are specific terms which have been prohibited from such contracts and you need to make sure they are not in your contracts
- 6.Planning Contract Terms – recently contract terms which prohibit you from objecting or even making submissions to future planning permissions by the builder of your new home have become common in new build contracts. Be careful of such contract clauses and make sure you are aware if they exist in your contract.
- 7.Snag Lists – don’t rush snag lists. This is your one opportunity to ensure your house is completed correctly. Always use a properly qualified person to conduct your snag list / survey and always ensure all matters on your snag list are completed in full
- 8.Loan Approval Clauses – most loan offers only last for 6 months therefore if your new home will take some time to complete ensure your contracts are strictly subject to loan approval. If you ensure this there may be a way for you to walk away from the contract at a later stage if your bank refuse to give you the mortgage to purchase the house in certain circumstances.
Call or email me today for further details on buying your new home and for a competitive quotation for my legal fees.