Buying a home can be exciting yet complex. Helen Holloway, a paralegal in WSP Solicitors' Residential Conveyancing Department, simplifies the steps from exchange of contracts to completion, helping you navigate the process with ease, whether you're a first-time buyer or moving to a new home.
Exchange of Contracts
The exchange of contracts is the point at which the buyer and seller formally agree to the sale of the property. Here's what happens during this stage.
Formal Agreement:
Both parties sign identical copies of the contract, which sets out and finalises the terms of the sale.
Legally Binding:
Once the contracts are exchanged, the agreement becomes legally binding, meaning neither party can back out without facing potential legal consequences.
Deposit Payment:
A deposit, usually 10% of the purchase price, is paid by the buyer at this stage.
Completion Date:
The completion date is also fixed at this point and is usually set for 7 or 14 days after the exchange of contracts.
Physical Exchange:
The physical exchange of contracts happens between the two sets of conveyancers, usually over the phone. They will read through the contract to ensure they are exactly the same and will sign off using a formal process, time-stamped for accuracy. Then, each conveyancer sends their physical copy of the contract to the other via post, essentially exchanging the contracts.
Completion
Completion is the final stage of the property transaction process. Here's what happens during this stage:
Transfer of Funds:
All purchase monies, including mortgage funds, are sent to the seller's conveyancer.
No Set Time Frame:
There is no set time frame for this to happen, but the contract usually specifies that the property must be empty and vacant by 1pm on the completion day.
Release of Keys:
Once the funds are received, the seller's conveyancer releases the keys to the property, and the completion is officially complete.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
