EXCHANGE AND COMPLETION
So, you've found the perfect property and put in an offer. Your solicitor has checked that everything is in order and you have agreed a date to exchange contracts. But what actually happens on that day?
Exchanging contracts is the point at which both buyer and seller are legally obliged to complete the sale.
In most cases, this will involve the buyer paying a deposit (usually 10% of the purchase price) to the seller. The solicitor will also need to have arranged the mortgage in order for this to go ahead.
On completion day, the buyer will complete the purchase by paying the remainder of the purchase price, plus any fees and stamp duty.
The solicitor will then transfer the ownership of the property to the buyer. It's important to note that exchange and completion can happen on different days, depending on what is agreed between the buyer and seller.
So, what do all parties need to have in place to make sure the process goes smoothly?
Firstly, it makes sense for all involved to meet with their solicitors before exchange day. This means going through the final contracts and checking everything is in order, including any outstanding queries.
On exchange day, the solicitor will need all paperwork, including contracts and fees. They will also require proof of identification from both the buyer and seller.
It's vital that they have enough money to cover any deposit or other fees that are due on completion day, plus enough to cover their own fee for completing the transaction.
On completion day, once the money has been transferred from the buyers solicitor to the sellers solicitor, the transaction is then complete and keys can be handed over to the new owner.