Has anyone advice about using new build recommended solicitor?

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We have been offered a deal with a new build housebuilder but they have said it's condition we use their recommended solicitor and mortgage company. If we don't use these then there is no deal unless we buy the house at full asking price with nothing extra ie stamp duty paid.

Does anyone have any experience good or bad about using the builder's recommended solicitor?what would you advise?

Not had any experience re mortgage but usually the recommended solicitors are good. They have normally done a lot of other properties on the same development so all the documentation is familiar to them and they are only recommended if they do a good job and get the purchase through quickly. I deal with recommended solicitors a lot as I act for developers on newbuild sales and recommended solicitors are a lot better than solicitors who are unfamiliar with the sites. I hope that helps.

No personal experience but I would run a mile.

I've heard so many tales of dodgy solicitors not telling buyers about issues on new build properties that it just seems incredibly risky to me. How much are you saving on this so-called special deal? (Over comparable properties, not over the inflated advertised price)?

I think new builds in general are pretty poor value, but trying yourself into sub-optimal solicitors and mortgage deals on the biggest purchase you'll ever make is a bad idea as far as I'm concerned.

As a solicitor myself (though not in property) I would be very angry at having to use a specified solicitor.

Obviously they can offer you these benefits but the house would have to be something pretty special for me to put up with that.

to be fair brumeye its sometimes the non recommended solicitors that don't ask the pertinent questions. I have known solicitors raise no enquiries at all which always worries me but in our case we send all of the documentation to recommended solicitors before the properties are sold so that they can go through them and raise any enquiries. I have never known a recommended solicitor not be thorough. by the way I have no vested interest as they usually get paid a lot more than we do!

As another solicitor, I would be less concerned about the solicitor than about the mortgage. The solicitor is legally obliged to act in your best interests at all times. However, I would want to do some very careful calculations to compare the mortgage deal you are getting, including penalties for selling or remortgaging in due course. Also, what kickbacks is the developer getting from the mortgage company?

Do not do it! The recommended solicitor on the estate I live on did not advise the buyers that the road was not adoptedby the council, nor was there what is called a' section 38' agreement to ensure adoption took place. Horrendous problems ensued....

Thanks all, I'm not sure what the devoper gets from the mortgage company. We are pretty annoyed as they waited til we were about to go in to sign the reservation document to tell us that we had to use their recommended solicitors and mortgage company if we want to have the deal of stamp duty paid and part exchange our property. They said if we buy it at the full price with no deal then we can use our own mortgage and solicitors. I thought that the nhbc say that builders can't make you use particular service providers but it seems standard practise.

I second what gettingobsessive has said.

How can we make sure we don't get ripped off if we do go for it? Obviously they know people get their hearts set on houses- that's why they can pull these kinds of stunts!

We're just about to complete on a new biuld having gone with reccommended solicitor. Same as you - we got incentives for going with their broker and solicitor. Positives - they know the development and they're committed to doing everything within the timelines (which in our case are tight). Also, if deadlines are missed or something else doesn't go well, they can't blame our solicitor.
Negatives - you totally feel that they're not working for you they're working for the developer. They basically just forward on what the developers send them (in our case without even reading it!) so you know that important questions are probably not asked and nothing wrong with the house or against the developer will ever be 'found'.
In our case we opted for trusting the developer and only time will tell if we've made a mistake.....

An independent survey will at least set your mind at rest about the property.
(the surveyors that did ours didn't even get to the house...........)

You could always additionally employ your own solicitor to do searches and to check what the recommended solicitor has done?

That is a good idea myhandslooksoold but how much would it cost?

Tugamommy how is your purchase going?

Hi all, does anyone have any experience of Berkeley homes property developer?
I have been doing some research on line, trust pilot and other home buyers sites etc.. and there’s so much contradiction and not sure whether we should avoid Berkeley all together, as reviews are very alarmingly bad yet another site shows that they are award winners of being a good developer. Choosing a property developer is proving to be stressfully. Many Thanks

No no and no again.
Please join National Leasehold Campaign and ask that question there. I cannot emphasis enough why you should get a good, independent, specialist solicitor who needs to scrutinise the lease, covenants, TP documents, ground rent (If leasehold) terms, estate/service charge fees (nowadays uncapped and unregulated so keep your wallet open at all times for them to dip into as and when). Are managing companies embedded in the deeds? Are drains, roads, open spaces going to be adopted by the council (becoming more and more unlikely) or will you be expected to maintain them as well as paying full council tax.
The "recommended" solicitor will not tell you the full story. Many are now being sued. Do not believe anything you are told either by those sweet, and oh so helpful sales staff.
Join the NLC (over 17,000 duped buyers of new builds) and ask your question there. Incidentally well done for raising this question. You don't realise the importance of it, but with reading and research, you will!

nationalleaseholdcampaign.org

Thank you for your response.

What neverending said x 100%!

On a new build it also worth getting an independant snagging check. I think surveyors do them. Have a google. ie someone completely indepenedant of the building company. Friends of friends did it and they raised over 400 snagging issues. They helped them get them resolved and liaised with builders directly. Other people in their development are still fighting 4 years on.

For the record, sales staff are often commissioned directly the more people they refer to related companies eg solicitors, mortgage companies, surveyors etc etc. You are in a stronger position than you think.

We were going to buy a new build around a year ago. Big reputable company. We got to £x price, then got told we had to use various services being referred by them so we walked away. Took them 24 hours before they said oh, ok.....use who you want.

IMO they will want the sale especially in this current economic climate.

I know its not the question you asked but i can only warn away from newbuilds as a tradesman, they are built so poorly and so quickly now that I would be surprised if they last 25 years without major renovation.

Granted there are some good builders out there but the problems are so prolific that its more than likely that you'll have more problems, and spend more money, than its worth in the long run.

@SNDDevorating The bad quality is only the start. The New Build Estate/Shared Ownership properties today are generally a financial trap. YOUR home is being monitised by large corporations/overseas investors. Research very very carefully then run.
@areallthenamesusedup it's not just about commission. It's because a good, specialist, independent solicitor will tell you all the financially exploitative traps that you would be signing up to. The "recommended" solicitor won't because he is actually working for the house builder, not you. The real truth of what you are signing and the nightmare implications will be withheld.

Thanks to all, lot’s to think about and your suggestions are really good points that helps us to ask those important questions, and know that we can also instruct a surveyor to look at those snagging issues in a new build.

Yes, I agree with Neverending. It’s not just the commission thing. The huge scandal over ever increasing ground rents was allowed to escalate because so many solicitors were “ tied” to developers. It makes my blood boil so many corporate are nothing more than fraudsters. (Excuse me whilst I get off my high horse 🙄).

The upshot of it all is as a buyer please do not feel your are beholden to the developers. Walk away if it does not feel right, And do not get rushed into anything. Good luck!!!

Isn’t there a conflict of interest here?

An independent solicitor may pick up a defect in the legal paperwork whereas their recommended solicitor will just want to get the job done as quickly as possible.