{"id":23725,"date":"2026-06-16T14:31:31","date_gmt":"2026-06-16T14:31:31","guid":{"rendered":"https:\/\/www.riaabarkergillette.com\/uk\/?p=23725"},"modified":"2026-06-16T14:31:32","modified_gmt":"2026-06-16T14:31:32","slug":"what-to-check-in-a-new-build-contract","status":"publish","type":"post","link":"https:\/\/www.riaabarkergillette.com\/uk\/what-to-check-in-a-new-build-contract\/","title":{"rendered":"What to check in a new build contract"},"content":{"rendered":"\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Buying a new build property is an exciting prospect. The appeal of a brand-new home, untouched by previous owners and often built to modern energy efficiency standards, is entirely understandable. For buyers in prime and super-prime markets, this often extends to acquiring high-specification apartments or houses in some of London\u2019s most sought-after locations. But beneath the show-home finish lies a legal process that carries real risk if approached without care.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unlike a standard resale purchase, new build contracts are typically drafted by the developer\u2019s solicitors and, unsurprisingly, they tend to favour the developer. Completion timelines, specification details, and financial obligations can all be defined in ways that protect the builder rather than the buyer. Understanding what to look for before you sign is essential. In higher-value transactions, where timelines, financing structures and expectations are often more complex, this scrutiny becomes even more important. Here is a guide to the key areas your solicitor should examine carefully.<\/p>\n\n\n\n<h3 id=\"h-the-long-stop-date-and-completion-timelines\" class=\"wp-block-heading\">The Long-Stop Date and Completion Timelines<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Of all the clauses in a new build contract, the long-stop date is arguably the most important. This is the absolute deadline by which the developer must complete the build. If the developer fails to meet it, you should have the legal right to terminate the contract and recover your deposit in full.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Contracts will usually include an \u201cestimated\u201d completion date, but this is rarely binding. It is the long-stop date that provides genuine protection. Make sure it is realistic and, crucially, that it falls before your mortgage offer expires. Mortgage offers typically last between three and six months. For high-value purchases, particularly those involving private banking or international funding arrangements, finance timelines may be more bespoke and should be carefully aligned with the contractual position. If the build overruns beyond that point, you may be forced to reapply for a mortgage, potentially on less favourable terms.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Check also whether the contract entitles you to any compensation if completion is delayed. Many standard developer contracts offer nothing on this point, so it is worth negotiating before exchange. In premium developments, there may be greater scope to negotiate enhanced protections, depending on the nature of the scheme and the buyer\u2019s position.<\/p>\n\n\n\n<h3 id=\"h-specification-and-what-you-are-actually-buying\" class=\"wp-block-heading\">Specification and What You Are Actually Buying<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should include detailed plans, approved drawings, floor plans, and a site map showing precisely where your plot sits within the development. Vague descriptions of finishes and fittings are a common source of dispute, so the contract should specify materials, appliances, and finishes in full detail.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In higher-end developments, where bespoke finishes, interior design packages or branded residences are involved, it is particularly important to ensure that specifications reflect what has been marketed and agreed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Pay close attention to any clauses that allow the developer to make \u201cminor\u201d changes to the specification without your consent. How \u201cminor\u201d is defined matters considerably. The contract should state that any substitutions must be of equivalent or better quality, and your solicitor should push back on any wording that gives the developer unchecked discretion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Check that plot boundaries, parking spaces, driveways, and fencing are clearly defined. For central London developments, this may extend to storage units, parking licences, concierge services or access to shared amenities. These can shift as the wider estate develops, and a clear contractual description avoids disputes later.<\/p>\n\n\n\n<h3 id=\"h-costs-deposits-and-financial-matters\" class=\"wp-block-heading\">Costs, Deposits, and Financial Matters<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The headline price is not always the full picture. Clarify whether flooring, turfing of the garden, light fittings, and utility connections are included in the price, or whether they come as chargeable extras. These costs can accumulate quickly and catch buyers off guard.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the developer is offering incentives, such as contributing to your stamp duty or legal fees, ensure these are explicitly recorded in the contract. A verbal assurance from a sales agent carries no legal weight.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Where the purchase involves a leasehold title, or where the development has communal estate areas, check the level of any service charges or estate management fees. In prime London developments, service charges can be significant, particularly where concierge services, security, gyms or communal facilities are provided. Understand how these are calculated and, importantly, how they can increase.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under the Leasehold and Freehold Reform Act 2024, which received Royal Assent in May 2024, leaseholders now have greater rights to scrutinise and challenge service charges, and the Act also contains provisions that will ban the creation of new leasehold houses in most circumstances, though these provisions are subject to commencement regulations and are not yet fully in force. If a developer is proposing to sell a new house on a leasehold basis, your solicitor should scrutinise this carefully in light of the direction of travel in the law.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the question of ground rent, the Leasehold Reform (Ground Rent) Act 2022 capped ground rent at a peppercorn on new residential long leases in England and Wales, and the 2024 Act is expected to build further on this, with additional ground rent restrictions forming part of its provisions, though full implementation remains subject to secondary legislation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If a developer includes any provision for a financial ground rent, this is unlikely to be acceptable, particularly in higher-value transactions where market expectations are firmly against such provisions. It is worth noting that the government is continuing to introduce secondary legislation through 2025 and 2026 to bring the full range of the 2024 Act&#8217;s provisions into force, and further reform is anticipated, so the legislative landscape for leasehold property is evolving. Your solicitor will be best placed to advise on the current position at the time of your purchase.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ensure your deposit is protected by an appropriate insurance scheme. If the developer becomes insolvent before completion, deposit protection could be the difference between recovering your money and losing it entirely.<\/p>\n\n\n\n<h3 id=\"h-legal-title-tenure-and-restrictive-covenants\" class=\"wp-block-heading\">Legal Title, Tenure, and Restrictive Covenants<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Confirm whether the property is being sold freehold or leasehold. While most new-build houses are now sold freehold, following sustained pressure on the industry to end the leasehold house model, some developments retain estate management arrangements under which a management company controls communal areas and charges homeowners accordingly. Understand what obligations arise from this arrangement before you commit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Review any restrictive covenants carefully. These are legal obligations that run with the land and bind you and all future owners. Common examples include restrictions on extending the property, altering its appearance, or using it for business purposes. They should not come as a surprise after completion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In central London developments, additional layers of regulation may apply, including building management rules or estate regulations that affect how the property can be used or altered.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Check whether the estate roads and communal infrastructure will be adopted by the local authority once the development is complete. If they are not, you could find yourself contributing indefinitely to private maintenance costs. The contract should state clearly that the developer will bring roads and services up to an adoptable standard.<\/p>\n\n\n\n<h3 id=\"h-warranties-snagging-and-defects\" class=\"wp-block-heading\">Warranties, Snagging and Defects<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">New build properties should come with a 10-year structural warranty from a recognised provider. The most widely known is the NHBC Buildmark warranty, though alternatives such as Premier Guarantee and LABC warranties are also accepted by most mortgage lenders. Verify that the warranty is in place and that it is transferable to a future buyer should you decide to sell.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During the first two years, the developer is typically responsible for rectifying defects and snags. The contract should be clear about the mechanism for reporting and resolving issues within this period. Do not assume this protection exists automatically; check the wording.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There is no automatic statutory right to carry out a pre-completion snagging inspection, but your solicitor should seek to include this as an express contractual right or confirm that the developer is bound by a consumer code that provides for it. For high-value properties, it is common to instruct specialist snagging professionals to ensure finishes meet the expected standard.<\/p>\n\n\n\n<h3 id=\"h-the-reservation-agreement\" class=\"wp-block-heading\">The Reservation Agreement<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Before the main contract is issued, most developers require a reservation fee to secure the plot. The reservation agreement is a separate document, but its terms deserve careful attention.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Where the developer is a member of a recognised consumer code, such as the New Homes Quality Code, a 14-day cooling-off period is typically provided, during which you can withdraw and receive a full refund of the reservation fee. However, this is not a universal statutory right, and the position will depend on the terms of the reservation agreement and whether the developer is bound by such a code. Your solicitor should check this before you commit any money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Beyond that period, the position becomes less straightforward. The reservation agreement will usually set out what happens to the fee if you fail to exchange contracts within the specified timeframe, typically around 28 days. In competitive prime markets, these timelines can be tighter and require careful coordination. Understand the financial consequences before committing any money, and take advice from your solicitor before signing.<\/p>\n\n\n\n<h3 id=\"h-taking-the-right-advice\" class=\"wp-block-heading\">Taking the Right Advice<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">New build contracts are complex documents, and the stakes are high. The developer\u2019s solicitors will have drafted the contract with their client\u2019s interests in mind. You need someone acting in your place.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For buyers operating in the West End and wider prime London market, a more tailored, commercially aware approach is essential. Transactions often involve greater value, tighter timelines and a higher degree of negotiation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Always instruct an independent solicitor with experience in new build transactions, rather than one recommended by the developer. Get in touch with your solicitor as early in the process as possible, ideally before you sign anything at the reservation stage. Early legal advice can save considerable difficulty and expense, further down the line.<\/p>\n\n\n\n<h3 id=\"h-about-the-author\" class=\"wp-block-heading\">About the author<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Brinda Granthrai joined RIAA Barker Gillette (UK)\u2019s real estate team in May 2025. She brings over 15 years of experience advising high-net-worth individuals, private companies and international investors on complex real estate transactions. She works closely with the team to deliver commercially focused, pragmatic solutions across the full property lifecycle.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buying a new build home can be exciting, but the legal process carries important risks. From long-stop dates and mortgage deadlines to specifications, deposits, service charges and warranties, early legal advice can help protect your position before you commit.<\/p>\n","protected":false},"author":12,"featured_media":23726,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[16],"tags":[22],"class_list":["post-23725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insight-article","tag-residential-property"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What to check in a new build contract | RIAA Barker Gillette<\/title>\n<meta name=\"description\" content=\"Buying a new build property can involve complex contracts, long-stop dates, deposits, warranties and service charges. 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