Ever heard of a documentation fee on a new build home?

lolabear123_2

Hi there,

Hoping someone might be able to kindly help me out with this. We are buying a new build home and are first time buyers. We are at the stage where we have reserved our home, had a mortgage offer, and exchanged contracts. We are now waiting for the property build to be completed and the final exchange!!! Here's where my question comes in:

During our exchange of contracts with our solicitor, he mentioned that there would be a documentation fee of £150 payable to the housing developer at the final exchange. He raised an eyebrow about this and stated we could feel free to question this with developer. We could not delay the signing of this document because it was the last possible day to do it, so signed, which is no problem.

We took it up with developer (Linden Homes) who declared that it was something that everyone has to pay. Thing is, it was never mentioned before and no amount internet searching can find anything about it! I've trawled through quite a few new build property buying guides, looked at all the fees and processes involved, read every bit of small print on any paperwork we have and had also had a good look through the developers website. I can honestly not find anything about this fee! Anywhere!

So.. we wrote a letter to them, and 2 weeks later an area manager replied through the sales exec, stating that it was something everyone paid and it covered 'preparation for legal documentation and transfer'. We are already paying our solicitor for document prep etc, this is an additional fee made payable to Linden Homes.

Has anyone heard of this documentation fee, had to pay it, or are aware of it? I am going to request a written response to my letter so that i have something more formal. I feel like we are paying their legal fees.

Many thanks in advance for any potential advice!!

Lolabear

caeler

It is normal in my experience (with persimmon). Bit odd they didn't mention it earlier in the process to help you to budget.

chanz4

yes barratt also, it has the warranty and certificates for windows etc that are needed if you want to sell on

caeler

chanz4 wrote: »

yes barratt also, it has the warranty and certificates for windows etc that are needed if you want to sell on

You got certificates for your windows? I didn't think you needed documentation for new builds. Do let me know as I'll chase my developer!

gazzabboi

I'm in the same boat, exchanged. There's a £150 doc fee

lolabear123_2

Thanks for the replies.

Interesting, maybe Linden are a bit relaxed about putting this information forward. Our main concern is that to our knowledge, there are no more fees to pay (except solicitor fees and stamp duty). It's just a bit annoying when more fees start to pop up that havn't been mentioned previously.

I think i will request the written response from them still (which also asked for details of any further fees). If I find out any more i will let you know. Maybe it's just a Linden Homes thing!

Thanks again!

chanz4

caeler wrote: »

You got certificates for your windows? I didn't think you needed documentation for new builds. Do let me know as I'll chase my developer!

yes along with other sign off items

Richard_Webster

Nearly every builder's solicitor charges a documentation fee. Your solicitor should have told you this.

Builder negotiates a cheap rate with a solicitor for selling his new builds arguing they are all straightforward, so solicitors charge this fee to make up for some of their fee reduction.

Tancred

lolabear123 wrote: »

Hi there,

Hoping someone might be able to kindly help me out with this. We are buying a new build home and are first time buyers. We are at the stage where we have reserved our home, had a mortgage offer, and exchanged contracts. We are now waiting for the property build to be completed and the final exchange!!! Here's where my question comes in:

During our exchange of contracts with our solicitor, he mentioned that there would be a documentation fee of £150 payable to the housing developer at the final exchange. He raised an eyebrow about this and stated we could feel free to question this with developer. We could not delay the signing of this document because it was the last possible day to do it, so signed, which is no problem.

We took it up with developer (Linden Homes) who declared that it was something that everyone has to pay. Thing is, it was never mentioned before and no amount internet searching can find anything about it! I've trawled through quite a few new build property buying guides, looked at all the fees and processes involved, read every bit of small print on any paperwork we have and had also had a good look through the developers website. I can honestly not find anything about this fee! Anywhere!

So.. we wrote a letter to them, and 2 weeks later an area manager replied through the sales exec, stating that it was something everyone paid and it covered 'preparation for legal documentation and transfer'. We are already paying our solicitor for document prep etc, this is an additional fee made payable to Linden Homes.

Has anyone heard of this documentation fee, had to pay it, or are aware of it? I am going to request a written response to my letter so that i have something more formal. I feel like we are paying their legal fees.

Many thanks in advance for any potential advice!!

Lolabear

It's standard practice. Why are you making a big deal of it?

lolabear123_2

Richard_Webster wrote: »

Nearly every builder's solicitor charges a documentation fee. Your solicitor should have told you this.

Builder negotiates a cheap rate with a solicitor for selling his new builds arguing they are all straightforward, so solicitors charge this fee to make up for some of their fee reduction.

Thanks Richard - makes sense.

princeofpounds

Actually I would be making a big deal out of it if I hadn't been informed beforehand. It's a fee for a service which 'normally' would be performed by the vendor for the vendor. It doesn't technically benefit the buyer in any way, it's just a subsidy of the vendor's solicitor costs.


If it's a convention, it's a convention. But you have to know about conventions to follow them.