3. Exchange

Posted in 16th August 2022 by

Categories: Sales FAQs

Once you and your solicitor are satisfied with everything, you can start negotiating a completion date. The date of completion will need to be agreed and deposit monies received by the purchaser’s

solicitor before exchanging contracts. Your solicitor will also need to carry out a bankruptcy search on each purchaser. This search will also need to be carried out on any family members or friends from whom a loan or gift is given to the purchaser. There will be a nominal fee payable to the HM Land Registry, and the results should be immediate.

Exchanging contracts will make the transaction legally binding, therefore after this time, neither party can pull out or change the completion date without legal consequences. Exchanging contracts usually happens by telephone where the seller’s and purchaser’s solicitors will read out the details of the contract and then send their client’s signed copy to one another. A deposit amount will need to be agreed and sent to the seller’s solicitor. The purchaser’s solicitor will need to pay the deposit monies to the seller’s solicitor who will hold onto them until completion has taken place, however this will depend on how soon the completion date is.