You are now entering the last stages in the legal process. Exchanging contracts means that the buyer and the seller are both legally committed to the sale. Once completed, you legally own your new home and can move in.
1. Preparing for exchange of contracts
Once your solicitor has all the details they need, they will send you a pre-contract report and a copy of the registered title. If you are happy with everything, you need to approve the contract by signing it.
Your solicitor and the seller’s solicitor will swap or ‘exchange’ contracts. Your solicitor will transfer your deposit to the seller’s solicitor and arrange a date of completion. If you pull out at this point, you may lose your deposit.
3. Preparing for completion
Ask your solicitor what you need to do and when. Your solicitor will:
- Check with the Land Registry to make sure the title of the property is OK.
- Prepare the ‘Transfer Deed’ and send it to the seller’s solicitor.
- Make the final arrangements for payment, including drawing down the mortgage money for you.
- Prepare final accounts for you including details of any further money needed from you to complete.
- Once you have exchanged contracts, you are responsible for the property’s building insurance. Make sure you are covered in case anything happens before completion.
Contributed by Helen Adams, Managing Director of www.FirstRungNow.com