surveys on properties - deposit on property

scraggy55 | 22:02 Wed 25th Apr 2012 | Property

7 Answers

Do I have to have a Survey on a New Build property, which will have a 10 year NHBC Guarantee, if so what type of Survey would be the most suitable. Also do I HAVE to pay a deposit for the property which I will be buying 'cash' 'outright' from proceeds of sale of present property. My Solicitor has sent me a form saying I have to pay 10% - is this a 'legal' requirement? Thanks all!

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The Builder

The deposit is mainly for the benefit of the seller; in case you default halfway through and he's run up costs. He would keep the deposit. It's not uncommon to "exchange contracts", and "complete" simultaneously. No deposit is needed as the whole price is paid in one go. Lawyers don't usually like doing it this way though.
10% is a convention. It's always negotiable. Occasionally, a reduced deposit is agreed where buyers may be struggling to find 10%.

Although claiming via NHBC is often a huge hassle, it's still an insurance policy against defects. The only survey you might need is a simple valuation; to make sure you're not paying too much.

buildersmate

To clarify the 'NHBC guarantee' you refer to is actually a 10 year warranty against major structural defects (like the foundations shifting a bit), the rest of warranty for mechanical / electrical items is just 2 years and you should expect snagging items (minor faults with finishes) to be sorted out by the building contractor within 3 months.
I wouldn't (and have never) had a survey done on a new build property that I have bought.

scraggy55

Question Author

Thank you both very much. The deposit will be taken from my buyers deposit fund and I don't think I will bother with the Survey. Trying to same at least 'some' pennies!

craft1948

I paid cash for my current house and was never asked for a deposit.

Dobi

Here we have to pay 40% dep on land that will be build on and also need to do surveys for quality of ground eg dolomite . Do you build with cement and bricks like us or wood ?

cathfromsaron

deposit is to show interest!

and i would have the best survey you can afford and READ the NHBC 'Guarantee' thoroughly, because people have been let down before!