Exchange now for completion in March

[GreenTurtle1]

Hello

Looking for some help please. Buying a new build that needs to be exchanged on in the next few weeks but house won't be ready until March.

How do I ask my solicitor to protect the 10% paid on exchange so that I get in back if any problems on completion?

Many thanks

What do you mean by "problems on completion"?

There are various ways to protect the deposit and your solicitors will have ensured one of them applies. Ask them.

If you're buying a new-build then the chances are that it will be paid to the seller as agent (not as stakeholder) which means that the seller (presumably the developer) gets the money on exchange. So, if it fails to build and goes insolvent then unless there is any deposit insurance then theoretically you are at risk. That said, that's what happens with most new-builds.

Thank you for your replies.

Just the mortgage broker suggested getting the solicitor to protect this due to the length of time til completion. He doesn't foresee any issues but just in case.

My solicitor had already gone home for the day when I posted earlier so wasn't able to speak to her to ask about it.

Your property will have a new build guarantee, some of which protect your deposit.

Or you can change the contract wording so that your deposit is held by the developer's solicitors until completion.

If it is a new build with NHBC warranty then you deposit may be protected should the builder be insolvent but only if that additional service has been purchased by the builder. You need to check. I only say NHBC as they have the largest market share. This is likely to be similar with premier and LABC but I'm not sure. Definitely need to check.