Home Completed

This is what all your hard work was for. Your new home build is completed. You will be aware that the home is near ready by keeping in contact with the selling agent or visiting the building site. It’s important to understand your legal fees for buying a house. Use your common sense in judging what stage you are at.

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Step 1
Invitation to Snag

This the start of the move into your new home. Usually, the builder or agent will invite to snag a week or so ahead of the completion. The letter is the notification that the home is completed to the builders standard, and you are being invited to inspect and prepare the list of any issues (snags). You give a copy to the builder and keep a copy for your records. Then, the builder sets about rectifying the snags.

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Step 2
Completion Notice

As soon as the builder invites to snag, they will notify their solicitors to send the completion notice and closing statement to your solicitor. This is a formal legal notice.

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Step 3
Completion Statement

When your Solicitor receives the completion notice, they prepare your Closing Statement, which includes your booking deposit, contract deposit, Help to Buy amount (if applicable), your loan amount, legal costs and finally, the balance payable by you to complete.

You should check the closing statement as soon as you receive it and ensure that you have your balance ready and available. You will be required to transfer your balance to your solicitor at least 3 clear days ahead of closing. Check that the amount you are transmitting is within the limits of your bank facilities.

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Step 4
Home Loan Draw Down

Your solicitor will liaise with your bank to transfer your home loan. The drawdown typically takes 5 working days from the request. However, at busy times of the year ( such as leading up to bank holiday weekends or Christmas), this may be longer. In addition, if there is any paperwork missing or outstanding preconditions, these may delay the loan transfer. Therefore, it is always worthwhile for you to check with your bank to ensure that everything is in order “ducks in a row”.

Typically delays arise if:

1. The direct debit mandate is not signed
2. The bank valuation is not completed, and with your bank
3. Your mortgage protection policy is not in place

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Step 5
The  Closing Date

This is your house, so you want to close on a date that suits you. This means agreeing on a date when the house is fully ready and you have all your finances in place.

Your solicitor performs the closing, so you need to let them know what is happening and when you want to close. Your solicitor will check with the builder’s solicitors that all the closing documents are ready (signed and sealed etc.). If all is ready, you move to the closing.

 

Next Stage – Closing

 

Glossary

Balance – this is the amount you are required to pay to your solicitors to fund the completion of the purchase, including stamping the purchase deed and registering ownership.