What actually happens at Exchange?

Exchange of contracts is where the contracts are signed and swapped between the buyer and seller, meaning the sale has been legally agreed. It's one of the last steps when buying a house and is also the point where you will need to pay your deposit to your conveyancer.

What actually happens on Exchange Day?

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.

What do solicitors do on exchange?

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 long does exchange actually take?

Exchange usually takes place between 5-28 days before completion, and on average it is about 10-14 days.

How long does exchange of contracts actually take?

How long is there between exchange of contracts and completion? Your conveyancer will discuss dates for completion with you before your contracts are exchanged. Usually, there's a period of one to three weeks between exchange and completion, but this may be longer depending on the size of your chain.

Explaining The Process Of Exchange Of Contracts

Why do solicitors take so long to exchange contracts?

Solicitor-related delays often stem from communication issues and workload management. Some conveyancing solicitors juggle multiple clients, impacting their response time to your enquiries. If the solicitor fails to reach an exchange or process other factors promptly, it can slow down the entire timeline.

Can a buyer pull out after exchange?

If either party pulls out of the deal after exchange it is a breach of contract. So, if a buyer pulls out they will lose their deposit which is usually 10% of the sale price. If a seller refuses to proceed after exchange of contracts, they are liable for the buyer's costs including legal, mortgage and survey fees.

Do solicitors call before exchange?

So, to answer the question, yes, a solicitor should inform their clients when the exchange of contracts is about to take place. This proactive communication ensures that clients are well-prepared and have the necessary information to navigate this crucial stage of the conveyancing process.

What is the final stage of buying a house?

On completion day, the buyer's solicitor sends the seller's solicitor the purchase price balance. The buyer can then pick up the keys from the estate agents and move in. Your final step in buying a home process is now complete, and it's time to enjoy your new home.

How to speed up exchange of contracts?

Buying and selling at auction

You are guaranteed to speed up the conveyancing process by buying or selling at an auction. The traditional method of an auction is a process where the buyer and seller exchange their contracts immediately and overall have up to 28 days for sale completion.

What time of day do solicitors usually exchange contracts?

Prime Time

Most exchanges happen in the morning, with the peak exchange window between 10 am and noon. This allows the solicitors ample time to prepare and complete the process. Many mortgage lenders prefer exchanging contracts after 10 am. This allows enough time for funds to transfer on the same day.

Should you view a house 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.

What can go wrong after exchange?

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. Mortgage offer withdrawal.

Do you get keys on exchange day?

Exchange vs completion

Exchange is when you sign the contract and put the deposit down on the house. At this stage, you're legally bound to buy the property. Completion is when ownership is officially transferred to the buyer. This is when you'll get the keys to the property and can move into your new home.

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.

How many hours does exchange take?

How long does exchange of contracts take on the day? The actual exchange process can take a few hours. Each solicitor reads out their client's version of the contract, and then the contracts are exchanged by post. The transfer of funds can also take several hours.

At what stage does a house sale usually fall through?

But when is a house sale most likely to fall through? It can happen early on due to mortgage issues, In the middle after the survey, Or at the last minute due to gazumping or a sudden change of heart.

What checks do solicitors do when buying a house?

The 3 main searches when buying a house are the local authority, water and drainage and environmental search. Title/Deeds. The solicitor checks the title and deeds of the property. They look for easements such as rights of way/light, restrictions/charges needing removal, and any changes that may be needed.

Should you start packing before exchange of contracts?

In conclusion, although there is normally quite a bit of time in between exchange of and the agreed completion date, it can never hurt to be prepared and start packing even before you exchange contracts. It is always a good idea to be organised and in control during the conveyancing process.

Why do solicitors delay the exchange of contracts?

Slow Buyers/Sellers – Sometimes it's the buyer or seller holds things up (deliberately or otherwise). They might not provide sufficient information or sign contracts promptly. Busy Solicitors – If a solicitor has many clients, they may take longer to conduct the work that's required.

Why is exchange taking so long?

Exchange cannot take place until anyone needing a mortgage has received their offer. If lenders are busy or potential borrowers have been slow to send in their applications or have omitted crucial documents, everyone in the chain could end up waiting for an offer to be issued.

Who legally owns the house after exchange?

After contracts are exchanged, the buyer becomes legally bound to purchase the property. This also means they are responsible for getting the house insured. However, legally, the seller still owns the property.

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.

What happens on Day of Exchange?

Exchange of contracts is where the contracts are signed and swapped between the buyer and seller, meaning the sale has been legally agreed. It's one of the last steps when buying a house and is also the point where you will need to pay your deposit to your conveyancer.