Exchanging House Contracts – A Step-by-Step Guide
When it comes to buying or selling a house, the exchange of contracts is a crucial step in the process. This is the point at which both parties become legally committed to the transaction, so it`s important to understand how it works. In this article, we`ll take you through the steps involved in exchanging house contracts, from making an offer to completion.
Step 1: Agree on the details
Before you can exchange contracts, you`ll need to agree on the details of the sale. This will include the price, the completion date, any fixtures and fittings that are included, and any other special conditions. Once you have agreed on these details, your solicitor or conveyancer will prepare the contract.
Step 2: Review the contract
Your solicitor will send you a draft of the contract, which you should review carefully. Make sure that all the details you agreed on are included, and that there are no errors or omissions. If you have any questions or concerns, now is the time to raise them with your solicitor.
Step 3: Sign the contract
Once you`re happy with the contract, you`ll need to sign it and return it to your solicitor. At this point, you`ll also need to pay a deposit, which is usually around 10% of the purchase price. This deposit is held in a special account until completion.
Step 4: Exchange contracts
Once both parties have signed the contract, they will be exchanged. This means that each party`s solicitor will send the signed contract to the other party`s solicitor, and they will be checked to ensure that they are identical. Once this is done, the contracts are binding, and both parties are legally committed to the sale.
Step 5: Completion
Completion is the final step in the process. This is the day on which the purchase is completed, and ownership of the property is transferred from the seller to the buyer. The completion date will have been agreed in advance, and on this day, the balance of the purchase price will be paid, and the keys will be handed over. Congratulations, you`re now the proud owner of a new home!
In conclusion, the process of exchanging house contracts can seem daunting, but with the right advice and guidance, it can be a smooth and stress-free process. If you`re considering buying or selling a property, be sure to consult an experienced solicitor or conveyancer who can guide you through every step of the process, and ensure that your interests are protected at all times.