Moving house can be an exciting but stressful experience. There are so many things to consider, including when you need to exchange contracts. This step is crucial in the home buying process, as it initiates the legal transfer of ownership of the property from the seller to the buyer. Here’s everything you need to know about when you should exchange contracts when moving house.

What is the exchange of contracts?

The exchange of contracts is the point in the home buying process where the sale becomes legally binding. At this stage, both the buyer and seller are committed to the transaction and can be held liable for any breach of contract. Once the contracts are exchanged, a completion date is set, and the property is officially owned by the buyer.

When should you exchange contracts?

The exchange of contracts should only take place when you are certain that you want to buy the property and have secured the necessary funds. It is recommended that you exchange contracts no earlier than two weeks before your completion date. This allows enough time to ensure that all the necessary paperwork is in order, and any last-minute issues can be resolved before the completion date.

Before exchanging contracts, you should ensure that you have a clear understanding of your mortgage agreement and have received a homebuyer`s report that outlines any issues with the property. You should also ensure that all the necessary legal work has been completed and that you have received satisfactory responses to any queries.

What happens after exchanging contracts?

Once contracts have been exchanged, both parties are legally bound to complete the transaction. The completion date is usually set for a week or two after the exchange of contracts. On completion day, the remaining balance from the buyer is transferred to the seller’s solicitor, and the keys are handed over. The buyer can then move into their new home.

In conclusion, when moving house, it is important to exchange contracts no earlier than two weeks before the completion date. This allows enough time to complete all the necessary legal work and ensure that all the paperwork is in order. It is also important to make sure that you understand your mortgage agreement and have received a homebuyer`s report. Once contracts have been exchanged, the sale becomes legally binding, and the completion date is set. On completion day, the buyer can move into their new home.