From the new build reservation fee to completion: every stage

The stages at a glance

Buying a new build home in England, Wales or Northern Ireland usually runs through the same stages. In Scotland the names differ (exchange is called conclusion of missives, and completion is called settlement), but the order is much the same.

The rules quoted below come from version 2 of the New Homes Quality Code, which applies to homes reserved from a registered builder on or after 2 March 2026. Homes reserved earlier are covered by version 1, and some builders are covered by a different consumer code instead. The guide to your protections explains how to check which applies to you.

Before you reserve

Do the groundwork first, because reservation fees and timetables start running the moment you sign.

• Know your budget. Work out your deposit, stamp duty, legal costs and moving costs. The cash you need calculator adds these up for a real home, less any builder's incentive. The mortgage affordability calculator gives an illustration of the price your income and deposit could reach. Both are an illustration, not advice.
• Get a mortgage agreement in principle if you need a mortgage, and speak to a qualified, regulated mortgage adviser about how long an offer would last.
• Choose your own conveyancer. The Code says builders must tell you to get independent legal advice. They may recommend advisers, but they must make clear you are free to choose your own, they cannot offer you an incentive for using one they recommend, and they must tell you in writing about any fee or commission they receive for the introduction.
• Ask for the information the Code lists. Before you reserve, a registered builder must tell you the size of the home, its tenure and lease length, the specification (including things you might expect but that are not included, such as flooring or turf), the indicative energy rating, the price, the estimated completion date, the warranty, service charges and management arrangements, future phases, any restrictions on selling later, and the expected council tax band.

Pressure selling is not allowed

Under the Code, a builder must not push you to reserve by claiming other people are interested or that the price is about to rise when that is not true, or by offering an incentive only if you decide on the spot. If you go to a time-limited event such as a launch weekend, you must be given seven days to consider the purchase, during which the incentive (but not a particular home) is held open for you. If you are offered part exchange or an assisted move, the terms must be clear and you must be given enough time to consider them.

Reservation: the fee and the agreement

When you find the plot you want, you reserve it by signing a reservation agreement and paying a reservation fee. The New Homes Quality Board's buyer guide says fees are usually £250 to £1,000, depending on the builder and the price of the home. The fee normally comes off the price at completion, but check your agreement.

Under the Code, you and the builder must not sign until all the required information has been given to you. The agreement must be in plain language and must include:

• who you are buying from, the plot, the price and the reservation fee
• how long the price and the reservation last, and how the reservation ends
• your right to cancel, how to cancel, and what can be deducted from a refund after the cooling-off period
• that the sale is subject to contract (in England, Wales and Northern Ireland)
• the date by which exchange must happen
• the tenure, ground rent, estimated management charges and any event fees (such as charges when you sell or sublet)
• how roads, open spaces and shared areas will be managed
• the warranty provider's contact details and a summary of the cover
• how to ask for changes to the home and what kinds of change are possible

The builder must also give you an affordability schedule listing costs tied to the tenure and management of the home over the five years after the sale, such as ground rent, estate or service charges, and maintenance of shared equipment like a communal heating system. The leasehold, freehold and estate charges guide explains what to look for.

The 14-day cooling-off period

Every reservation agreement under the Code must include a cooling-off period of at least 14 days. If you cancel for any reason in that time, the builder must refund the full reservation fee. If you cancel later, the builder can keep only the deductions set out in the agreement, and must refund the rest within 14 days of your notice of cancellation.

While the reservation is valid, the builder cannot cancel it or agree to sell the same home to someone else.

Between reservation and exchange

This is when your conveyancer does most of the legal work. Under the Code, the builder must give your legal adviser the information needed to advise you. That includes the planning consent reference and any future phases with planning permission, a list of what is included in the price, the specification and the type of main structure (masonry, timber, steel frame or other), any unusual restrictions on how you use the home, the warranty summary, and a schedule of known costs over the next five years.

If the home is not finished, you must also get the expected completion date and a plan showing the size, layout, plot position and which way the home faces, including steep slopes in the garden and how boundaries will be finished.

How long you have

The reservation agreement sets the date by which you must exchange. Under the Code, this must be reasonable, taking into account when the builder provides all the information, and not less than six weeks after the reservation date (28 days plus the 14-day cooling-off period) unless you ask for an earlier date. In practice, builders often expect exchange within a few weeks, so instruct your conveyancer and mortgage lender straight away.

Your mortgage

If you need a mortgage, apply as soon as you reserve. The lender will value the home and needs to see the warranty details. New build lending has some differences, such as how incentives are disclosed to the lender and how long an offer lasts when the home will not be finished for months. The new build mortgages guide covers these.

Exchange of contracts

At exchange, you and the builder sign the contract of sale and it becomes legally binding. You pay the exchange deposit, which the New Homes Quality Board's guide says is usually 5% to 10% of the price. If you pull out after exchange, you are likely to lose that deposit.

Immediately before exchange, the Code says you must state in writing, through your conveyancer, any spoken statements you are relying on. If a sales adviser has promised you something, such as a parking space, a view or an upgrade, get it into the contract.

What the contract must cover

Under the Code, the contract of sale must:

• set the completion notice period (the time between the notice to complete and the completion date)
• set out when you can cancel, for example if the builder makes a change you have not agreed to that affects the size, value or appearance of the home, or if there is an excessive or unreasonable delay in finishing it
• explain what happens if the home is not ready by the date the builder gave
• explain how your deposit is protected
• provide a two-year builder's liability period

Fixed date or exchange on notice

If the home is finished or nearly finished, you may exchange with a fixed completion date. If it is still being built, you usually exchange "on notice": the contract gives an expected date, and the builder serves a notice to complete when the home is ready.

The long-stop date

Many new build contracts also include a long-stop date: a final date after which, if the home is still not ready, you (and sometimes the builder) can cancel the contract. Long-stop dates are a contract term rather than a Code rule, so read the clause with your conveyancer. Check how far the long-stop date is from the expected completion date, and what you get back if you cancel.

While the home is built

Off-plan buyers can wait months between exchange and completion. The buying off-plan guide covers this in depth. Under the Code, the builder must explain how it will keep you updated on the timetable and give you updates at appropriate times.

Major changes

If the builder makes a major change, meaning one it is responsible for that significantly affects the size, appearance or value of the home (including the internal layout), it must tell you in writing. You then have 14 days to cancel the reservation agreement or contract and get back your deposit, reservation fee and any other payments in full. The builder cannot serve the notice to complete during those 14 days. For smaller changes to design or materials you have no right to cancel, but the builder must keep you informed.

Your deposit is protected

The Code requires builders to protect deposits and fees, for example by insuring the full deposit through the new home warranty or holding it in a separate client account until completion. If the contract is cancelled, the builder must refund the deposit and any other money due within 28 days. Warranty providers also offer deposit or insolvency cover before completion: see the new build warranties guide.

Notice to complete and the pre-completion inspection

When the home is ready, the builder serves the notice to complete. Under the Code, the completion notice period is usually expected to be at least 14 calendar days unless you agree otherwise. The New Homes Quality Board's guide says the exact date is not usually confirmed until about two weeks beforehand, so keep your removal booking and notice on your current home flexible.

Inspecting before you complete

The Code gives you the right to inspect the home before completion, or to appoint a suitably qualified inspector to do it, after the notice to complete has been served. Inspections must follow the New Homes Quality Board's standard pre-completion inspection checklist. An inspector must belong to a recognised professional body, hold professional indemnity insurance and use that checklist. If the inspection finds problems that break the warranty's technical standards, the builder is responsible for fixing them, ideally before completion or within 30 days if that is not possible.

The inspection is not meant to delay completion. See the snagging guide for what to check.

The home must be finished

Under the Code, completion can only happen on a complete home that meets building regulations, with warranty cover in place. All rooms and facilities must be finished for their purpose, with any remaining work limited to decoration, fixing faults, shared areas or switching from temporary to permanent utilities. A builder must not offer you an incentive to complete on a home that is not finished.

Completion day

On completion day your conveyancer sends the rest of the money, the builder's solicitor confirms receipt, and the home is yours. Most mortgage lenders will only release funds once your buildings insurance is in place, so arrange it before completion.

By completion, the Code says the builder must have given you:

• a schedule of any incomplete work on your home, with timescales to finish it
• a schedule of incomplete work on the wider development, with known future phases
• a home demonstration, including how to use the appliances
• the warranty cover note or certificate and policy documents, including exclusions, limits and excesses
• its complaints procedure
• the building regulations completion certificate, or an explanation of when it will be available

In England and Northern Ireland, Stamp Duty Land Tax must be paid within 14 days of completion. In Wales, Land Transaction Tax is due within 30 days. Your conveyancer usually files the return and pays it for you on the day. See the stamp duty guide or the stamp duty calculator.

After you move in

Your builder must give you an after-sales service for at least two years after completion. You can report snags and defects throughout that time, and you can make a formal complaint, and refer it to the New Homes Ombudsman Service, if you are not happy with the response. The moving into a new build guide covers the first months.

When you are ready to start, search every new home for sale or see which builders are offering incentives.