New Properties

If you are buying a new property from a builder or developer, there are special points to bear in mind. These may not apply in all cases and we will be happy to advise in specific circumstances.

Roads and Sewers

These are normally built with the development as a whole. In the case of an estate, there will probably be an agreement between the builder and the local authority. All paperwork will need to be checked carefully and you should be sure you understand all its terms. In some cases, if the builder becomes insolvent before the roads are adopted by the local authority, the new owners of the properties may become liable for the upkeep of the roads.

Planning Permission

All new properties have to be built in accordance with the terms of Planning Permission and a Building Regulations Consent. You should satisfy yourself that the builder has not deviated from these requirements.

Specification

In many cases a builder will market a property when it is only partly constructed. In these circumstances you should be sure you understand the specification of the house when it is finished — including details of the fixtures and fittings. Some items may be regarded as extras for which there is an additional charge. If the price includes carpets or furnishings you should ensure it is made clear whether you have a choice and what your options are. Everything should be clearly recorded in writing so that you know exactly what you will get and what it will cost.

Gardens, Fencing, Paths

These may not be completed until after you buy the house. You should carefully check what kind of fencing and/or landscaping will be carried out as part of the price.

The exact dimensions of the plot may be varied according to the requirements of fencing.

Landscaping

Sometimes the Local Authority will require the builder to carry out landscaping works after the completion of the estate, e.g. planting trees or shrubs.

The builder may reserve the right to come onto your property for this purpose.

If your property is affected by the planting scheme, you may be required to maintain the trees or shrubs, or even replace them if they die within a period of perhaps five years.

NHBC/Foundation 15 Insurance

New properties are normally covered by a National House Building Council 10-year insurance policy or a Municipal Foundation 15-year insurance policy. These will cover the property against major structural defects but not for decorative matters or normal wear and tear.

The builder is normally responsible for the correction of minor defects for the first two years — again, this does not cover decorations or wear and tear.

Incentives

Builders often offer incentives to purchase, e.g. cheap mortgages, free health or redundancy insurance, or a price reduction for a rapid exchange of contracts. It is essential that the documents properly reflect what has been agreed.

Restrictions

The documents may contain restrictions on your use of the property to protect the remainder of the development. You should be sure you understand the scope of all restrictions. In many cases they are enforceable not only by the builder, but also by neighbours or sometimes the local authority.

Deposit

When buying from a builder the contract will say that the builder can use your deposit (to pay for further building). Obviously, this puts your money at risk if he fails to finish your house or goes into liquidation. If this point bothers you, you should discuss with us ways to minimise your risk.

Article first published October 2002
Last reviewed November 2005