A Guide to Buying Off Plan
Buying off plan can be a daunting prospect, but rest assured our experienced team will help guide you every step of the way.
MAKE SURE YOU ARE IN A POSITION TO RESERVE – In order to ensure that you don’t miss out on the property you want you must first be in a position to purchase.
Buying with a Mortgage – The property you choose must have a completion date of no more than 6 months from purchase as otherwise your mortgage offer may run out. Extensions and mortgages beyond 6 months can be arranged but please speak to a specialist broker. Proof of mortgage agreement/in principle must be provided at the point of reservation.
Sale Dependent – If you are reliant on the sale of a property then your property must be under offer with the chain well advanced. This may mean going into rented before your new home is ready.
Cash Purchase – If buying without the need for a mortgage or the sale of a property, proof of funds must be provided.
1. RESERVE YOUR NEW HOME
Once you have chosen the home you wish to purchase you must then pay, within 24 hours the reservation fee of £1,000.00 ( £500 if purchasing with Help to Buy ). Payment of your reservation fee ensures that your chosen Rose Home will be held in your name for a given period (28 days), prior to exchange of contracts when the reservation period end. This fee forms part of your purchase and will be deducted from the final price when you pay the balance at legal completion. If, for whatever reason, you find you are unable to exchange contracts at the end of the agreed period, Rose Homes reserves the right to re-offer, for sale, the home in question.
2. EXCHANGE OF CONTRACTS
Exchange of Contracts is required to take place within 28 days from the date of reservation, as recorded on your reservation form. At this stage, your solicitor will ask you to sign the contract and arrange payment of the balance of the deposit (10% of the purchase price). Exchange of contracts constitutes an agreement that is legally binding on both parties to complete the sale and purchase of your new home. Any amounts that you have paid under the contract prior to completion are protected by the NHBC warranty. Once contracts have been exchanged, you should ensure that all the necessary arrangements are in place for your move to your new home, so that everything runs smoothly on Legal Completion.
3. WATCH AND WAIT
Now you can sit back whilst the development progresses and watch your property being constructed. We will often send updates during this period to let you know how construction is progressing.
4. NOTICE TO COMPLETE
An inspection will be carried out during this period to ensure that your home conforms to NHBC standards. Rose Builders’ solicitor will be advised of the construction completion of your home and will then contact your solicitor to serve notice to complete the purchase, this marks the start of the ten-day notice period, during which legal completion must take place. Once the completion funds have been received, our Sales Consultant will inform you that Legal Completion has taken place. The Sales Consultant will then make arrangements to meet you at your new home to carry out the handover process.
