A new build feels like the simplest purchase available — no chain, no previous owner’s extension, no missing deeds. In contract terms it is frequently the least balanced, because you are signing the builder’s document rather than a negotiated one, and often buying something that does not yet exist.
The Builder’s Contract, and What to Read
Expect the builder’s own contract rather than a negotiated Law Society one, frequently in two parts — a contract for the site and a building agreement. Completion dates are often expressed flexibly, so a buyer may have considerably less certainty about when they get keys than they assume, and payment may be staged. What to read closely: the specification, in detail, because what is promised there is what you are entitled to, and finishes or appliances described as being “to the builder’s selection” give you very little. The completion arrangements, including what happens if the build runs late and whether you can withdraw and recover your money. The structural guarantee arrangements. What happens to your deposit and whether it is protected. And any conditions relating to the estate as a whole — roads, services, open spaces, and when they will be taken in charge by the local authority, which matters years later. Then snagging: an inspection of the finished unit by a surveyor or engineer on your behalf shortly before closing. Pay for it properly rather than walking around yourself — a professional finds what you will not and describes it in terms the builder must act on. The awkwardness is timing, since snagging lands close to completion when commercial pressure is highest.
The Management Company You Are Joining
In a multi-unit development, an owners’ management company owns or is responsible for the common areas and for their upkeep, insurance and management, funded by annual service charges. When you buy, you become a member of it — you are not merely paying a charge, you are joining a company with obligations and, eventually, a share of responsibility for how it is run. Legislation governs how these companies operate, how service charges and sinking funds are set, and the transfer of common areas from the developer to the company. As a buyer, look for: the company’s accounts; the level of the service charge and its trajectory; whether a sinking fund exists and is adequate for future major works; whether the common areas have actually been transferred from the developer, which is a recurring problem in Irish developments; and whether there are disputes or significant unfunded works pending. A management company in poor order is a genuine reason to reconsider a purchase. Finally, on the buyer schemes: Help to Buy and the First Home Scheme both exist and both bear mainly on new builds — Help to Buy being a Revenue-administered tax refund for first-time buyers and the First Home Scheme a shared equity scheme run with participating lenders. Their rules, limits, eligibility conditions and price caps are set by Revenue and the scheme administrators and change from time to time. This firm does not advise on tax and states no figure or condition for either: confirm the current position with them directly, and do it before you commit.
Buying a New Build?
Send the contract and the specification early. The specification is where the negotiating room is, and the management company documents are where a purchase occasionally should stop.
Call 01 5827148