Conveyancing Spotlight: New Builds

The new build process is one which conveyancing solicitors are becoming increasingly wary of. There are many issues to consider where new builds are concerned, and the nature of the process is not without risk given that developments can take years to complete. This article will consider some matters which can cause concern. The Conveyancing and Property Committee has formed a sub-group to consider all aspects of the new build process and work remains on-going in drafting documents and agreeing procedures which are practical and developed with a view to clarifying the process and making it work in practice.

Compliance with the Home Charter Scheme

The Procedures for New Build Developments set out documents and information which must be provided. Correspondence sent to the Conveyancing and Property Committee from a range of solicitors evidences difficulties. This can cause friction between managing clients’ expectations (which may not be focused on certifying title as good and marketable) and complying with the solicitors’ own obligations under the Home Charter Scheme, particularly those required by UK Finance and which may not be understood or appreciated by the client and indeed other stakeholders in the process.

A1. Legible copy estate/location layout plan

This has posed difficulties for conveyancing solicitors in obtaining such maps, especially where larger developments are concerned. Whilst those larger developments can be difficult to map, especially regarding scale, they are key to understanding the development.

A2. Confirmation of which specific documents of title relate to the site in sale

The revised Practice Direction is intended to clarify the documents that are provided and a summary which will allow a purchaser’s solicitor to identify where the property is located, the relevant folio and the relevant road or sewer bonds which will affect the property directly. This is helpful to provide context and clarity if a large title pack is provided and is considered good conveyancing practice.

A11. Draft site map

The draft site map is helpful to consider the property in sale, though practitioners should be wary that changes can be made to this.

B1 Engrossed Transfer Deed / Lease (as appropriate) and counterparts, with final maps suitable for registration in the Land Registry

Delays and other issues with postage delivery have been widely noted which can create potential difficulties regarding undertakings and registration.

Whilst final maps may be provided, further to Land Registry Practice Direction 1/2019 layouts of common areas are not examined and encroachments are not raised prior to finalising registration. This may mean that the full extent of the property is not registered, requiring further rectification.

B3. Building Control Completion Certificate

There are many things to consider when fixing a completion date. A developer will, understandably, not want to leave a completed property vacant for any undue period of time and often in practice, final matters such as warranty and Building Control inspections are carried out mere days before completion. This can pose difficulties for solicitors to obtain the full Completion Certificate in sufficient time however it is a requirement, and this will require forward planning by a developer, when setting completion dates to account for this period. The Society is proactively engaging with Building Control and consideration of how best to manage this in practice forms part of the work of the new build sub-group. From information requested from the local Councils on the timescales for Completion Certificates, the production of these is not unduly lengthy, subject to all documentation being provided. It is incumbent on the developer and their team to ensure that Completion Certificates are available on completion.

Article 161 agreements

Recent discussions in the Assembly have been focused upon the number of outstanding bonds. The number of outstanding bonds in Northern Ireland is estimated to be in the region of 1,800. It can be difficult for a solicitor to evaluate a bond and will often depend on the circumstances at the time, including the stage of the development and likely timescales for completion. The Society has been representing to UK Finance for some time that “suitable” should be removed from the UK Finance Handbook regarding a bond, since a solicitor is not qualified to determine whether a bond is suitable, only whether it is in place. The Society has also been proactively engaging with NI Water regarding the form and content of Regional/ Mid Ulster Property Certificates, to seek further information in relation to bonds such as their status and any enforcement action that may be in place. Conveyancing solicitors may have noted some changes to these Property Certificates, where for properties constructed since 2013 and where NI Water hold records, the response will indicate if NI Water’s records indicate a connection. The Society has also made representations to the Committee for Infrastructure on the issue and will be responding to the current Unadopted Developments Private Member’s Bill Consultation. Ultimately where bonds are concerned, to mitigate risk, external involvement from the statutory undertakers in the granting and prompt and rigorous enforcement is required to give any level of certainty that a bond is sufficient to rely upon when certifying title as good and marketable. This is a matter which is not within a solicitor’s direct control and the Conveyancing and Property Committee continues to work to secure the certainty that practitioners need.

Management companies

Management company issues can be complex. Where a management company has dissolved, the Guidance on reversionary and insolvency issues for developments and management companies sets out the possible methods by which to reinstate the company. The transfer deed or lease will also be key to ensuring that there are satisfactory arrangements to deal with the long-term management of a development such as ensuring that privity of estate will endure for any successors in title, including the transfer of any reversionary interest. Sinking funds and reserve funds, especially for properties which may be likely to need future funds for maintenance, are also important to consider, especially where a lift is on site, which can attract significant costs. Suitable insurance is also key to consider. The Society understands that the Assembly is considering this issue and will seek to work closely with the Civil Law Reform Division to see how potential issues with management companies may best be managed.

The annual Conveyancing Conference will look at these issues in greater detail, and will offer opportunities to engage with some of the statutory undertakers and stakeholders. Taking place on Tuesday 14 October 2025 at Titanic, Belfast, register to attend here.

Claire McNamee, Conveyancing and Non-Contentious Business Lead, Law Society of Northern Ireland