Contracts are usually exchanged by both solicitors reading out the contracts over the phone (which is recorded by both of them) to make sure the contracts are identical. The contracts are then immediately sent out by them to one another in the post. This is known as exchange.
How long does it take a solicitor to exchange contracts?
It usually takes around eight to 12 weeks to reach the point where you’re ready to exchange contracts. The actual process is quite speedy, requiring a phone call between the buyer’s and seller’s solicitors.
Will my solicitor tell me when we exchange contracts?
The most common method is by telephone. Once satisfied that everything is in order and mortgage instructions from your lender have been received, your solicitor will call the seller’s solicitor to exchange contracts. … You will be notified by your solicitor of exchange.
What happens 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.
What does a solicitor have to do to exchange?
What is the process? On the day of exchange, the solicitor or conveyancer at the bottom of the chain has to contact the next one up and confirm to them that they’re in receipt of a signed contract of sale and deposit funds and also confirm the terms of the sale and completion date.
What can go wrong after exchange of contracts?
The house could burn down, fall due to structural issues or be vandalised. Between exchange and completion, the house could burn down due to a fire, be vandalised by thieves or simply fall down due to structural issues.
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.
Can I move in after exchange of contracts?
What happens after exchange? When exchanging contracts, the “completion” date is also confirmed. The completion date, put simply, is moving day. It’s the date on which the seller must vacate the property and the buyer will get the keys and can move in.
How much deposit do I need to exchange 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.
How long after exchange is completion?
How long between exchange and completion? Completion usually takes place 1-2 weeks after the exchange of contracts, but it can take up to a few months. Longer delays can occur if: Someone in the chain is renting and needs to give notice to terminate their tenancy.
Why do houses Exchange on a Friday?
Research by the Homeowners Alliance found that 115,000 home moves are delayed every year. One of the most common reasons for this is money not arriving in time. … They target Friday afternoons as this is when the most completions take place, and it gives them the weekend to avoid detection.
How long after signing contracts do you get keys?
A date for completion is set
Completion is when the money changes hands and you are able to finally get hold of the keys to your new place. A time of two weeks is usually allocated between exchanging contracts and completion, although it can be even quicker than this.