It’s time to exchange, but what actually is that?
Throughout your conveyancing transaction, whether it’s buying, selling or both, there will always be an exchange of contracts. This is a crucial step in the property transaction, but what actually is it?
Exchange of contracts takes place when the majority of the technical legal work is done. You should have received documents from your conveyancing solicitors at this point about the property you are buying/ selling and returned signed papers to your conveyancing Solicitors and if required deposit funds.
Once you are happy that you want to proceed, your conveyancing Solicitors will contact you on the day of exchange for your confirmation. This is to check you have not changed your mind or are being unduly pressured by anyone else.
When exchange takes place, you are officially locked into the transaction and cannot be released without losing your deposit (at least 10% of the purchase price), and may have the contract enforced again you and other further legal implications. This is why you need to be certain you wish to proceed with the transaction at this point.
Once you have given your authority to your conveyancing Solicitor they will proceed with exchange. The most common form of exchange is known as “Formula B”, which is a series of telephone calls that goes up and down the chain between Solicitors to check all the details are correct in the contract you have signed, such as spelling of names, the address and price of the property and normally a formal completion date is agreed. Completion is the date keys are released and you can move into your new home or start your new adventure elsewhere.
We at Josiah Hincks pride ourselves on being friendly and approachable conveyancing solicitors in Leicestershire, so if you have any doubt as to what exchange of contracts is, please telephone us and we will be happy to help you.
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