How do solicitors actually exchange contracts?

Exchange of Contracts is usually done by both solicitors reading out the contracts over the telephone (details of the conversation being recorded on the contract) to make sure the contracts are identical, and then immediately undertaking to send them to one another in the post.

How do solicitors exchange contracts?

During the exchange of contracts, the solicitor or conveyancer from each side will read out the contract over the phone in a recorded conversation. They will make sure the contracts are the same and then post them to each other. Once contracts have been exchanged you're legally bound to buy the property.

How long does it take for solicitors to exchange contracts?

How long does it take to exchange contracts? It usually takes around 8 to 12 weeks to reach the point where you're ready to exchange contracts.

What actually happens when contracts are exchanged?

As soon as contracts are exchanged, the transaction becomes legally binding. Before the exchange, there's no legal obligation to complete, and it's possible for either party to withdraw from the deal without legal penalty. Once you exchange, you've formally committed to transfer legal ownership of the property.

Do solicitors let you know when contracts are exchanged?

Yes, solicitors typically do ring clients before the exchange of contracts in a property transaction. This call is to confirm that everything is in order, discuss any last-minute details, and ensure both parties are ready to proceed. It's an important step to avoid any surprises on the day of exchange.

Explaining The Process Of Exchange Of Contracts

What day of the week do solicitors exchange contracts?

The exchange of contracts marks the legal commitment between buyer and seller to complete the purchase. It brings certainty to all parties. Most exchanges take place mid-morning from Monday to Wednesday, with 10-12 noon being the prime window.

Who signs first for exchange of contracts?

In most cases, it's the seller who signs the contract first. Here's a closer look at why that is and what it means for you.

Can things go wrong after exchange of contracts?

What can go wrong between exchange and completion? Some of the things that can go wrong between exchange and completion include: A break in the property chain. Loss of funds for either the buyer or seller.

Do all parties have to exchange on the same day?

No! Exchange of Contracts is when the contract for sale becomes binding, and when the completion date is set. Completion is the actual day of your move. The gap between exchange and completion can be anything (typically) from the same day of exchange of contracts through to a few weeks.

Who decides the completion date?

Who decides on the completion date? The buyer and seller agree the completion date, along with other parties if there's a chain.

Should you view a house again before exchange?

Should you view the property again before exchange? The simple answer is yes. Buying a property is a very important decision both financially and legally so it is essential that you are 100% sure about the purchase before exchange of contracts.

Can a solicitor request funds before exchange?

Solicitor Requesting Mortgage Funds: A solicitor typically requests mortgage funds from the lender a few days before the completion date of the property purchase, often around 5-7 working days in advance, to ensure the funds are available for the transaction.

Do I need to be physically present for exchange?

Typically, solicitors manage the exchange of contracts, so the buyer and seller do not need to be physically present. The actual exchange is a quick step, but coordinating with everyone involved in the chain can take some time during the day.

What is the shortest time between exchange and completion?

There does not have to be a minimum time between the day of exchange and the day of completion. As a rough guide, the exchange of contracts generally takes place between 7 and 28 days before completion. A week or two after the exchange is the most common timeframe.

Do you have to pay 10% deposit on exchange of contracts?

How much is an exchange deposit? Unless you and the seller agree otherwise, an exchange deposit is usually 10% of the purchase price. If you have a 95% mortgage, you may need to negotiate with the seller to pay less deposit. You should do this through your solicitor.

Will my solicitor tell me when we exchange contracts?

Learn more by reading our dedicated guide on How Long Does It Take to Exchange Contracts. Does my solicitor tell me when we've exchanged contracts? Yes. The solicitor will tell you the planned exchange date in advance.

How long after exchanging contracts do you get keys?

It usually takes between 7 and 28 days from exchange to completion. But it can be longer depending on what date you or the seller wants. For example, if the seller has a different date to move into their new home.

Can a house sale complete in 4 weeks?

In ideal circumstances, with no chain and a cash buyer, a sale could complete in as little as 4-6 weeks after offer acceptance. This rapid timeline is only possible when both parties have proactive conveyancers, there are no complications with property searches or surveys, and everyone involved is highly responsive.

How often do house sales fall through after exchange?

It might come as a surprise, but roughly one in three property transactions in England and Wales don't complete. Most of these happen after an offer is accepted but before contracts are exchanged — the point when a sale becomes legally binding. Until then, either party can walk away without legal penalty.

Should you start packing before exchange?

Despite this seemingly ample period between exchange and completion, packing up a whole house and everything in it can take a lot longer than most people expect. For this reason, it is advisable to start organising and thinking about packing a short while before exchange of contracts.

Who bears the risk between exchange and completion?

Standard Conditions of Sale

Risk – The SC provide that risk passes to a buyer on exchange of contracts. This means that a seller will have no liability for the state and condition of property between exchange and completion.

Who sets the date for exchange of contracts?

This is to ensure that both parties have correct and identical information, in terms of the parties, price and other important details. Once this has been confirmed, the solicitors will confirm the legal completion date and agree the time at which exchange of contracts has taken place.

Who normally signs a contract first?

Typically, the seller does so. These signed contracts are then exchanged, and at this point, the transaction becomes legally binding. The buyer usually pays a deposit, which is often just a small per cent of the purchase price.

What time of day does exchange happen?

There's no set time of day for it to happen. Just as soon as the conveyancers have checked everything is in place and both parties are ready. Usually, it takes place around midday, to allow time for moving.