Exchanging contracts is an important step in the process of buying or selling a property in the UK. It is the point at which the sale becomes legally binding, and both parties are committed to completing the transaction.
When you exchange contracts, you and the other party involved in the sale will sign identical copies of the contract. These contracts will then be exchanged, usually via your solicitors or conveyancers.
Once this has happened, the sale is legally binding, and you and the other party are committed to completing the transaction on the agreed terms.
Before you exchange contracts, you should be sure that you have all the necessary information about the property and the terms of the sale. You should have received a copy of the draft contract, which you should have reviewed carefully to ensure that everything that was agreed upon is included and accurate.
You should also have arranged for any necessary surveys or inspections to be carried out, and for your mortgage offer to be confirmed.
On the day of exchange, your solicitor or conveyancer will usually require a deposit from you, which is usually 10% of the purchase price. This deposit is usually paid by bank transfer or cheque.
After you have exchanged contracts, a completion date will be set. This is the day on which the sale will be completed, and the property will officially change hands.
On the day of completion, the remainder of the purchase price will be transferred to the seller`s solicitor, and you will take possession of the property.
In summary, exchanging contracts is the point at which a property sale becomes legally binding in the UK. It is an important step in the process, and you should be sure that you have all the necessary information before proceeding. Once you have exchanged contracts, you and the other party are committed to completing the transaction on the agreed terms.
