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.
Recent posts
Choosing which fixed rate to go for has been a dilemma for many of our clients so far this year. There really isn’t a right or wrong answer, but below we will look into the pros and cons of a two-year and five-year to help you make the right decision for you.
Best UK Mortgage Rates this Week
13 days ago
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
Stamp Duty Rush as Deadline Looms
14 days ago
According to Rightmove, a whopping 500,000 UK homebuyers are rushing to finalise their home purchase before the new Stamp Duty rules change in April.
The UK government is introducing new rules for Energy Performance Certificates (EPCs) that will impact landlords. Here's a summary of the key changes
Should I buy or rent in 2025?
21 days ago
Choosing to buy a house is one of the biggest decisions you are likely to make in your lifetime. There are many factors that influence a house purchase, these include: finances, housing market conditions, and mortgage rates.
ISAs: what are they, and which one is for me
24 days ago
Since being launched back in 1999 Individual Saving Accounts (ISAs) have been very popular for those wanting to put money into savings. There are four types of ISA, and the majority allow flexible saving and the ability to withdraw funds easily. There are financial penalties on certain products, these usually pay the most interest.
Benefits of buying a new build home
28 Feb 2025
According to the Office for National Statistics, last year (ending March 2024), there were 153,800 new homes completed in the UK. To help the housing crisis, the UK government has pledged to build 1.5 million new homes in the next five years.
Check out some of the reasons why a new-build home might be for you.
Many households are still being affected by the high cost of living, with several people worrying about how they can make ends meet on a monthly-basis. Unfortunately, the cost of bills including, water, council tax, and energy are still rising. Here are some things you can do.
More information
Trusted by
