They will draft a contract for the sale which in most cases nowadays is a pre-printed standard document that covers most eventualities. After contracts have been exchanged both sides of the transaction are legally committed to the terms of the contract, which in basic terms usually means the buyer must pay the purchase price by an agreed date and the seller must hand over the keys to the property and vacate by a certain date.
Next article: How is a Completion Date Chosen? To speak to a mortgage adviser please contact us on There will be no fee for Mortgage Advice. There may be a fee for arranging a mortgage. The Financial Ombudsman Service is an agency for arbitrating on unresolved complaints between regulated firms and their clients.
As a buyer, if you can ensure your funds are sent over to your solicitor or conveyancer several days in advance of the proposed exchange date, it should help move things along smoothly.
If there is a chain, it is usual that a seller may be using the funds they receive from their buyer to pay for some, if not all of their onward purchase.
As such, the deposit lodged by the buyer at the bottom of the chain may be taken into account and passed up the chain. The only exception would be if you required the deposit to be paid to an onward purchase of a new build, where the developer requires the deposit, in which case, the funds would be paid to them and guaranteed by a New Build Guarantee Scheme such as NHBC. In this case, granting the buyer access to undertake the required works may be the only way for the sale to proceed.
Key undertakings also often stipulate that the buyer is responsible for the utilities and Council Tax from the date of exchange. It tends to mainly be developers and property traders that look to carry out the transaction in this way. The buyer may want to own and start developing what they see as an excellent acquisition before anyone else gets hold of it, or the seller might have a pressing need to release their equity as soon as possible.
When a property is highly desirable and of great interest to a number of parties, if a buyer is able to push through a quick purchase in this way, that may give them an advantage and allow them to secure the property. Generally, it is only well-capitalised, professional property investors who attempt attended exchanges. At the point of exchange, both the buyer and seller are contractually committed to completing, so pulling out is a breach of contract and attracts financial penalties.
The key to moving the transaction along as quickly as possible is for all parties to respond to requests for information or action right away. There should be good communication between the buyer, their legal representative and their mortgage broker; similarly, the seller should be in touch with their conveyancer and estate agent to make sure things are moving along and there are no problems.
The estate agent should be in touch with all parties, checking in to progress the sale on a regular basis. It also helps if you can agree an exchange and completion date to aim for right from the start, to give everyone a timescale to work towards.
Getting ready to exchange contracts is a matter of getting the right legal and financial documentation signed and funds being in the right hands. As the onus is more on the buyer than the seller in the transaction, there is not as much for you to do. In the past, solicitors would meet up in person to physically exchange contracts, however, these days it is done over the telephone. They verbally confirm and agree the terms of the contract, the completion date and that they hold the required documentation and funds.
Other reasons maybe required paperwork which was promised and not received, such as offers from lenders or it could be deposits being promised but not being transferred by buyers in time. Bear in mind that most legal companies work on cases which they have to complete legally that week first, then, if time, look at property transactions which are expected to exchange and then progress other cases.
As a result they may intend to exchange on a certain date but when they look at the file, perhaps on the one day or morning they have spare, they realise they are missing key information required. This means that there can sometimes be an extended period between exchanging contracts and the date of completion. What is usually a period of 7 to 28 days can be months when buying a new build.
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