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exchange of contracts explained

Published: 15/07/2022

The exchange of contracts is a critical moment in the property buying process. It's when the buyer and seller's solicitors officially exchange documentation to signify an agreement between both parties. The exchange of contracts makes the agreement legally binding, which means neither party can back out without facing severe penalties.

Before exchanging contracts, it's essential to ensure that all the necessary details have been sorted out. Your solicitor should check everything from the agreed offer, the relevant Law Society forms, the surveys and valuations, the completion date, the funding for the deposit, and building insurance. You must also read and understand the contract, ask any relevant questions, and sign the contract before the exchange of contracts.

The exchange of contracts typically takes place one to four weeks before the completion date, although in some cases, it's possible to exchange and complete on the same day. However, this can be challenging, as everything must be packed and ready to move, and some lenders will only agree to it if they require a minimum of five working days between the exchange and completion.

The solicitors handle the exchange of contracts conducted mainly by phone and recorded. The legal firms read the contracts out loud to ensure they are identical, and then the contracts are posted to the other solicitor to finalize the exchange.

Once the contracts have been exchanged, the most challenging part is over, and you can start preparing for your move. Congratulations, you've made it to this exciting milestone!

Circa London is an estate agents Londoncall us today if you're looking to sell or buy property in central London.

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