Will my solicitor tell me when we exchange contracts?

During the exchange of contracts, both solicitors or conveyancers will read out the contracts over the phone in a recorded conversation. They will make sure the contracts are the same and then post them to each other. Once contracts have been exchanged you're legally bound to buy the property.

How long after signing contracts does exchange happen?

In most instances, exchange of contracts will usually take place anywhere between one to four weeks prior to completion date. It is, however, possible to exchange contracts and complete on the same day, but it's not for the faint of heart.

What happens before exchange of contracts?

Exchange of contracts is the point at which the buyer pays a deposit and the sale/purchase contract becomes legally binding. Completion is when the balance of the payment for the property is passed over to the seller's solicitor and ownership transfers to the buyer.

Who decides completion date?

As a first step, a seller might, for instance, retain the buyer's deposit and instruct his agent to remarket the property. It's therefore sensible that the completion date is set with regard to a realistic time frame and is some time after exchange of contracts.

How long does it take for 2021 to exchange?

You might wonder how long after making an offer do you exchange contracts, or even what time of day does the exchange of contracts happen. While it's entirely dependent on the size of the chain, you can expect to exchange between seven to 28 days before your completion date.

Exchange of Contracts – What do you and the solicitor need to do? - Video 7 of 9

Do you need a completion date to exchange contracts?

Yes, exchange of contracts can't take place without a completion date agreed. At the point of exchange, the deal becomes legally binding and everyone must complete on the agreed date.

Why do solicitors take so long to exchange contracts?

But, why do solicitors take so long to exchange contracts? The truth is there can be numerous reasons from them simply being bad at their job or having too many clients to handle, through to instructions from the seller, delays in obtaining searches, and even unresponsive buyers.

What can hold up exchange of contracts?

Common issues that can hold up exchange of contracts include: A seller who is slow to answer enquires from the buyer's solicitor. Buyers and sellers who are slow to provide required documentation or information. Solicitors who are working on several property sales at the same time.

Should I view property again before exchange?

Once contracts have been exchanged you have entered into a legally binding contract which is extremely difficult to get out of. For this reason, you must make sure you are happy and satisfied with the property you are going to purchase before exchange. You may want a second viewing for multiple reasons.

How long after signing contracts do you get keys?

Completion is provided for by the contract and typically is within 2-4 weeks from exchange of contracts. However, a shorter period might be agreed or provided for in the contract especially for example if the property is vacant.

What happens once contracts are signed?

Both parties become legally obliged to complete the transfer of the property on the agreed completion date. You and the seller should have signed identical contracts, but they'll sit with your solicitors until the exchange. Until it happens, either party can pull out of the deal.

Can a buyer pull out after exchange?

A buyer cannot legally withdraw an offer on a house if contracts have been exchanged. This makes exchanging contracts the most important element for you, as the seller. If a buyer does pull out after exchanging contracts, you are within your rights to sue them for losses.

Can you move into a house before exchange?

It is extremely rare for a buyer to be allowed to move into a property before the sale is complete, mainly because he may change his mind about buying once he has lived there and try to renege on the contract (although he would have to forfeit his deposit).

Can I exchange and complete on the same day?

Is it possible to complete and exchange on the same day? Yes, it can be done, but it can make the transaction more stressful for those involved. It is more common if you have a simple transaction where there is no chain.

How do you speed up exchange of contracts?

How often should you chase your solicitor?

How often should I chase my solicitor? There's no right or wrong answer to this and it's mainly down to how you feel. There's nothing stopping you from checking in with your solicitor everyday if that's what you feel you want to do.

How can I get my solicitor to hurry up?

Can a seller pull out after exchange?

The seller can decide to back out after exchange has taken place however doing so will mean they have breached the terms of the contract which will result in additional costs payable. From this point, the buyer will be able to issue a notice which requires the seller to complete within 10 days.

What is the longest time between exchange and completion?

You can expect to wait between 1 day and 3 weeks between exchange and completion. However, in some circumstances, buyers and sellers agree to exchange and complete on the same day or wait longer – sometimes even months. Either way, if you have just exchanged contracts (or about to) on a house sale, congratulations!

Do you have to pick up keys on completion day?

During the completion day, the property sale is finalised and the buyer can pick up the keys for their new house. Ownership will be transferred from the seller to the buyer, meaning the seller must begin moving out. For a smooth completion day, you should keep in touch with your chosen conveyancer as much as possible.

Who owns the house after exchange of contracts?

Do I own the house after exchange? Once you've exchanged contracts, you're legally bound to buy the property and can therefore say you are the new owner. However, even though, as we mentioned earlier, you're legally responsible for your new house after exchange, the seller still owns the house until completion.

Should I hand over keys before completion?

Do not hand over any keys to the purchaser direct without first consulting us. This could create serious legal problems for you. We suggest you arrange to deposit your keys on the completion day with the estate agents if any or contact us before the completion day about the keys.

Can completion date change after exchange?

Essentially the answer to this question is no. Once you have exchanged contracts you have entered into a binding contract and all parties are bound to complete on the agreed date and by a specified time.

Who holds the deposit on exchange of contracts?

Exchange of contracts is when the two legal firms representing the buyer and seller swap signed contracts, and the buyer pays a deposit. At this point, an agreement to buy or sell a property becomes legally binding: once the buyer and the seller have exchanged contracts, they can't back out of the deal.

Where does the 10% deposit come from on exchange of contracts?

A deposit is usually 10% of the purchase price, a significant sum. The deposit is paid to the seller on exchange of contracts as part payment of the purchase price. A request for a deposit over 10% should be questioned as it may not be legally enforceable because it amounts to a penalty on the buyer.