Exchanging contracts

With your survey safely completed and the lender happy with it, you can move to the stage of getting a formal mortgage offer from your chosen lender, which will detail all the conditions of the loan. Read this carefully and get your solicitor or your John Charcol  to explain anything you do not understand.

By this time, your solicitor should have a draft contract ready for you and the seller to sign. Once you have signed this contract, there is no going back, so be very sure you are happy with all the sale arrangements before you commit yourself.

Typically at exchange (unless exchange and completion are on the same day), you will have to put down a deposit of 5 or 10% of the purchase price. You also need to make sure that the building is insured, as you are now legally obliged to buy it (your solicitor will help make sure that this happens).

• Your solicitor has completed all the local searches.
• The surveyor's report is complete and accepted by all concerned.
• You have a formal mortgage offer in writing, which you have read and understood.
• You have the agreed deposit available.
• You have agreed a firm completion date for the sale, and this date is noted in the contract.
• There are no outstanding issues remaining to be settled between you and the seller.

The last point is very important. For example, there might be some doubt as to whether the property's existing carpets are to be included in the sale price. You need to get this sorted out in writing before you sign the contract.

When you have signed the contract, your solicitor will deliver it to the seller's solicitor in exchange for the contract the seller has signed. From this point onward, both you and the seller are legally committed to the deal.

John Charcol is not authorised to offer investment advice.  We recommend you seek professional advice with regard to these topics if you believe they may affect you.