As a professional, I understand the importance of creating content that is informative and helpful to the reader. In this article, we will discuss the question of “how do you know when you`ve exchanged contracts” when buying or selling a property.

Exchanging contracts is the final step in the process of buying or selling a property in the UK. It is also the point at which both the buyer and the seller become legally bound to complete the transaction. But how do you know when you`ve exchanged contracts? Let`s take a look.

When Do You Exchange Contracts?

Exchanging contracts usually happens a few weeks before the completion date, which is when the money and ownership of the property are officially transferred. It is important to note that contracts can only be exchanged during normal working hours, usually between 9:00 am and 5:00 pm, Monday to Friday.

What Happens When You Exchange Contracts?

When contracts are exchanged, both the buyer and the seller will receive a copy of the signed contract. At this point, the sale becomes legally binding, and both parties are committed to completing the transaction. The buyer will also need to pay a deposit, usually 10% of the purchase price, to the seller`s solicitor.

What Are The Next Steps?

After contracts are exchanged, the completion date is set, and both parties will agree on a time and date for the final handover of keys and transfer of ownership. The buyer`s solicitor will also prepare the transfer deed, which will be signed by both parties on the completion day. The seller`s solicitor will use the deposit to pay off any outstanding mortgage and estate agent fees.

How Do You Know When Contracts Have Been Exchanged?

The easiest way to know when contracts have been exchanged is to ask your solicitor. They will be able to confirm the exchange and provide you with a copy of the signed contract. The seller`s solicitor will typically contact the estate agent to confirm the exchange, who will then inform the buyer.

In Conclusion

Exchanging contracts is a crucial part of the property buying and selling process. Once contracts have been exchanged, both parties are legally bound to complete the transaction. To know when contracts have been exchanged, it is important to speak to your solicitor, who will be able to provide confirmation and a copy of the signed contract.