Exchange of Contracts Explained
Local searches have been completed, and your offer has been accepted – you're almost ready to move in! All that is left now is exchanging contracts. Discover what this means, how long it takes and what happens on completion day in our handy guide.
What does exchanging contracts mean?
When you exchange contracts, you're legally bound to buy the property. Your solicitor and the seller's solicitor will swap the signed contracts, meaning neither party can back out. You'll need to pay your deposit at this stage.
Once the contracts are signed, you and the seller can agree on a completion date.
Once the contracts are signed, you and the seller can agree on a completion date.
How much does it cost to exchange contracts?
You'll need to pay an exchange deposit when exchanging contracts. This is usually 10% of the property's price, but it could be less if you saved for a 5% deposit.
When are contracts exchanged?
You're ready to sign the contract once:
• All local searches have been completed
• Your mortgage lender has arranged an evaluation of your property
• You've arranged a home survey
• You've received a mortgage offer in writing
• You've arranged your deposit
• You've agreed on a completion date
• You've checked the contract and asked all relevant questions
• You've organised building insurance
• All local searches have been completed
• Your mortgage lender has arranged an evaluation of your property
• You've arranged a home survey
• You've received a mortgage offer in writing
• You've arranged your deposit
• You've agreed on a completion date
• You've checked the contract and asked all relevant questions
• You've organised building insurance
How long does it take to exchange contracts?
Exchanging contracts typically takes one to four weeks before completion, but this may vary. Ensure you have all paperwork in order and respond quickly to queries to speed up the process.
What should I expect when exchanging contracts?
The process of exchanging contracts is straightforward and handled by your and the seller's solicitor. They will:
• Read both party's versions of the contract over a recorded phone call
• Post their version to one another
• Send a copy to you
• Read both party's versions of the contract over a recorded phone call
• Post their version to one another
• Send a copy to you
What happens after exchanging contracts?
Once contracts have been exchanged, you can prepare for moving day! Start by updating your details, redirecting your post and booking a removal company to do the heavy lifting. If you only have a few items to move, you may want to hire a van to save money.
In the meantime, you should receive confirmation from your solicitor that you're the registered owner of the property according to HM Land Registry.
In the meantime, you should receive confirmation from your solicitor that you're the registered owner of the property according to HM Land Registry.
What happens on completion day?
Completion day means the property is all yours! Your mortgage and deposit are transferred to the seller on this day, and you'll get the keys to move in officially.
Ready to make your move? Discover our range of modern homes and apartments in London and access unique home buying offers. If you’re getting on the property ladder, our step-by-step guide for first-time buyers is here to help.
Call our Sales Advisers today and become a homeowner with Barratt London.
Ready to make your move? Discover our range of modern homes and apartments in London and access unique home buying offers. If you’re getting on the property ladder, our step-by-step guide for first-time buyers is here to help.
Call our Sales Advisers today and become a homeowner with Barratt London.
