Exchange of Contracts When Buying Property
So you’ve gone through the process of finding a property, making an offer, and having it accepted. Congrats! The next step is to exchange contracts. This is when the sale becomes legally binding. But what happens after that? Here’s a quick overview.
Once the contracts have been exchanged, the buyer will need to pay a deposit (usually 10% of the purchase price). The deposit shows that the buyer is serious about going through with the purchase and will be held in a designated account until completion.
Also read: What do solicitors need when buying a house
Completion is when the balance of the purchase price is paid and ownership of the property is transferred from the seller to the buyer. This usually happens around 2-4 weeks after contracts are exchanged. On completion day, the buyer will need to pay any stamp duty owed as well as any other associated fees.
After completion, keys will be handed over and possession of the property officially transfers to the buyer. From there, it’s just a matter of moving in and enjoying your new home!
Also read: What do solicitors do in house buying?
What to do if something goes wrong after the exchange of contracts
So you’ve done it – you and the buyer have exchanged contracts and are now officially agreed on the sale of the property. Congratulations! But what happens if, after the exchange, something goes wrong? Here are three tips for dealing with post-contract changes.
If the Buyer backs out…
The first thing to do is to check the contract. In most cases, if the buyer backs out of the deal after contracts have been exchanged, they will be in breach of contract and will forfeit their deposit. However, it’s always best to check with your solicitor or conveyancer to be sure.
Once you’ve established that the buyer is in breach of contract, your next step is to consider whether you want to sue for specific performance. This means going to court to force the buyer to complete the sale. You can only do this if you’re willing and able to complete the purchase yourself – so if you’re not, then it’s probably not worth pursuing.
If you decide to sue for specific performance, your third option is to negotiate a new deal with the buyer. This could involve reducing the price of the property or changing the completion date. If you do choose to go down this route, make sure you get everything in writing and signed by both parties before proceeding any further.
Also read: Do Both Parties Have to Agree to Sell a House
If something else goes wrong…
As we all know, life has a habit of throwing up surprises – and sometimes those surprises can impact a property sale. For example, what if the property is damaged before completion? Or what if a problem arises with the deeds?
In these cases, again, your first port of call should be your contract. The contract should set out what will happen in the event of such problems. In most cases, either party can terminate the contract if there is a material change to the property (for example, if it is damaged beyond repair). However, it’s always best to check with your solicitor or conveyancer before taking any action.
If you do decide to terminate the contract, then you’ll need to write to the other party (usually via your solicitor or conveyancer) setting out your reasons for doing so. Make sure you keep a copy of this letter – you may need it as evidence if things end up going to court.
There are a few things that can go wrong after contracts have been exchanged – but don’t panic! The first thing you should do is check your contract to see what it says about dealing with post-contract changes. If something else does go wrong (for example, if the property is damaged), then again, refer back to your contract and take appropriate action from there. And finally, remember to keep everything in writing so that you have evidence if things end up going to court.
Also read: The Legal Stages of Selling a House
How to protect yourself during the contract exchange process
The exchange process is one of the most crucial—and stressful—parts of buying or selling a property in the UK. Here are a few tips to help you protect yourself during this critical time.
Get Everything in Writing
One of the most important things you can do to protect yourself during the exchange process is to get everything in writing. This includes the sales contract, as well as any promises made by the other party. Having everything in writing will give you a solid paper trail to fall back on if something goes wrong.
Keep Cool and Collected
It’s easy to get caught up in the emotion of buying or selling a property. After all, this is one of the biggest transactions you’ll ever make! However, it’s important to keep cool and collected during the exchange process. Don’t let yourself be pressured into making a decision you’re not comfortable with. Once you’ve made an offer, it’s important to stand your ground and not budge on your price.
Hire a Good Solicitor
If you’re not familiar with the ins and outs of property law, it’s a good idea to hire a solicitor and conveyancer to help you with the exchange process. A good solicitor and conveyancer will be able to spot any potential problems with the contract and help you negotiate a better deal. They’ll also be able to offer guidance on anything you’re unsure about.
The exchange process can be daunting—but it doesn’t have to be. By following these simple tips, you can protect yourself during this crucial time. Remember to get everything in writing, keep cool and collected, and hire a good solicitor and conveyancer if you need one. With these steps, you can rest assured that you’re doing everything you can to safeguard your interests in the UK property market.
Also read: How to find a solicitor for buying a house
How to get help from a solicitor during this process
When you’re buying or selling a property in the UK, it’s a good idea to hire a solicitor and conveyancer to help you with the exchange process. A good solicitor and conveyancer will be able to spot any potential problems with the contract and help you negotiate a better deal. They’ll also be able to offer guidance on anything you’re unsure about.
If you’re not familiar with the ins and outs of property law, it’s definitely worth hiring a solicitor to help you out. They’ll be able to guide you through the process, answer any questions you have, and make sure that everything goes as smoothly as possible.
So what should you look for when choosing a solicitor and conveyancer? Here are a few tips:
– Look for someone who has experience in property law – preferably someone who has worked on transactions similar to yours
– Ask around for recommendations – friends and family are often a good source of information
– Check out reviews online – this can give you an idea of how other people have rated the solicitor’s services
– Meet with several solicitors and conveyancer before making your final decision
Once you’ve chosen a solicitor and conveyancer, it’s important to provide them with all the relevant information so they can get started on your file.
Also read: Can I do my own property conveyancing
Conclusion:
When it comes to the exchange process, it’s important to keep a cool head and remember that everything doesn’t have to happen at once. Take your time reading through the contract and ask questions if you don’t understand something. If you’re feeling pressured by the other party, take a step back and reassess what’s best for you.
=>Most importantly, make sure everything is in writing! This will help protect you during the exchange process and ensure that both parties are held accountable should any problems arise.
=>If you’re unsure about anything, don’t be afraid to reach out to a solicitor for guidance. They can offer advice on how to negotiate a better deal and help make sure that the transaction goes as smoothly as possible. With these tips in mind, buying or selling a property in the UK is easy!
