Exchange of Contracts

What is an exchange of contracts?

Exchange of contracts is when the buyer’s solicitor and the seller’s solicitor swap the contract documentation to confirm an agreement has been made between each party for the sale of the property. It is important to note that exchange of contracts makes the contract for the sale of the property legally binding.  This means that the terms of the agreed contract become binding on all parties – including the completion date. 

How to prepare for exchange when you are buying?

• Make sure you have submitted all your signed documents to your solicitor.
• Prepare your funds, this includes your deposit, stamp duty land tax, solicitors’ fees.
• Make sure you are happy with the terms and conditions of your mortgage
• Submit your buildings insurance details to your solicitor, if you are purchasing with a mortgage and make sure it is valid from your exchange date.
• Make sure you are happy with your search results.
• Make sure you are happy with the completion date.
• Obtain movers quotes if required.

How to prepare for exchange of contracts when you are selling?

• Make sure you have submitted all your signed documents to your solicitor.
• Prepare to empty the property.
• Make sure you are happy with the completion date.
• If applicable, arrange to give the keys to your estate agent.

Our Property Team at Johnson Astills can assist you if you are looking to sell or purchase a property. Please call us on 0116 2554855.