The house buying process can seem very long-winded and complicated but in reality it is just that so many different things need to be checked before the mortgagee will hand over the monies to the buyer’s solicitor and the buyer’s solicitor will hand over the monies to the seller. Given that the purchase of their home may well be the biggest financial decision of their life, most people are happy that there are so many checks and balances along the way.
After you have agreed to buy or sell a property, you will employ a conveyancer to do most of the paperwork for you. They will liaise with your lender if you have a mortgage and with the other side’s legal representative also. They will draft a contract for the sale (which in most cases nowadays is a pre-printed standard document that covers most eventualities. ‘Pre-contract Enquiries’ will be made of the seller. This is where the buyer’s representative gets to ask detailed questions such as ‘Does the property flood?’ or ‘Have you ever had a problem with the neighbours wall?’ These questions must be answered truthfully.
After the pre contract enquiries have been made, searches have been undertaken and answered and the mortgage offer has been formally accepted by the buyer (after a mortgage valuation has been undertaken), any cash required for the deposit, professional fees and charges will be requested by the buyer’s solicitor and once she is ‘in funds’ and the contract to purchase has been signed by her client, the buyer, she will be ready to ‘exchange contracts’.
After contracts have been exchanged both sides of the transaction are legally committed to the terms of the contract, which in basic terms usually means the buyer must pay the purchase price by an agreed date and the seller must hand over the keys to the property and vacate by a certain date. A deposit is usually paid by the buyer’s solicitor to the seller’s solicitor at this time but, critically, the purchase price has still to be paid and so whilst the transaction is agreed and legally binding, it has yet to happen.
The date that the contract requires the transaction to be completed is the day upon which the remaining monies are paid over to the buyer’s solicitor and the seller vacates the property and hands over the keys. This is usually moving day and is known as the date of ‘completion’.
Next article: How is a Completion Date Chosen?
To speak to a mortgage adviser please contact us on 01628 507477.
The most wonderful time of the year can easily turn into the most expensive time of the year. Watching the pennies doesn’t mean that the Christmas festivities have to stop, following a few budgeting tips can mean you still have a special Christmas and don’t go into the new year in debt.
4 days ago
December is usually a less desirable time to buy as many people don’t want to move over the holidays. However, prospective buyers do start to look at this time. Selling your home in winter may require a bit of extra attention to showcase your property at its best.
We look at why mortgage rates increased following the Bank of England's choice to reduce the bank rate, and should you fix now?
30 Oct 2024
On 30th October 2024 the Chancellor, Rachel Reeves delivered the Autumn budget which we had previously been warned would be “difficult”. Below we have summarised the main housing points.
23 Oct 2024
In an increasingly cashless society, money is an intangible concept for children to grasp. In the days of coins and notes, kids could see money as something physical you require to purchase goods and services.
In order to help teach your children about money, we have listed some tips below;
18 Oct 2024
The UK’s chancellor, Rachel Reeves will deliver the Labour government’s autumn budget at the end of the month, we take a look at what could be announced in relation to housing.
Recent research from Halifax has revealed the most sought-after locations for first time buyers in Britain.
The data which was taken from the Halifax House Price Index looked at areas outside of London where those looking to purchase their first property were buying. Despite high property prices and increased rates, these first time buyer hotspots have remained popular.
7 Oct 2024
Taking care of your mental health means looking after your emotional, psychological, and social wellbeing. There are several ways we can practice self-care that will help to improve our physical and mental health. This can help to reduce our risk of illness, manage stress, and boost our energy levels!