what does exchange contracts cover??

whitwori1971

Help, we are close to buying our new house after spending 6 weeks at in laws.

We are due to exchange on Monday and need some advice on how it covers us.

We have work to do (windows & kitchen) what does exchange mean?

Can either party pull out after exchange?

Can we do work on house during exchange to complete period, seller old man currently in hospital more than happy to allow.

pickledpink

whitwori1971 wrote: »

Help, we are close to buying our new house after spending 6 weeks at in laws.

We are due to exchange on Monday and need some advice on how it covers us.

We have work to do (windows & kitchen) what does exchange mean?

Can either party pull out after exchange?

Can we do work on house during exchange to complete period, seller old man currently in hospital more than happy to allow.

Once you've exchanged you're legally bound to complete. If either party pulls out after exchanging they will either lose their deposit (usually 10% of the purchase price) or be liable to pay the other party for their losses.

As for doing work on the property between exchanging and completion, providing the current owner is agreeable to that it shouldn't be a problem. But usually solicitors prefer it if you wait until completion day just in case of any last minute snags; and the fact that the property (and any contents) are not legally yours, and all sorts of complications could potentially arise from that.

bootalishus

hi
i wouldn't recommend doimg any works in between exchange and completion but if seller is happy i have gone into houses and cleaned and painted rooms magnolia- just means its clean when you go in and less stress on moving day

Doozergirl

In the event that the seller did renage on he contract for any reason, you'd have spent money renovating a house that wasn't yours. There would be no compensation for that as you shouldn't be doing that kind of thing - the house is not yours.

GDB2222

whitwori1971 wrote: »

We have work to do (windows & kitchen) what does exchange mean?

Can either party pull out after exchange?

Can we do work on house during exchange to complete period, seller old man currently in hospital more than happy to allow.

The exchange of contracts is binding on both parties, but occasionally things go haywire - maybe 1 in 1000 contracts?? It's not recommended to do major work on the property before completion, but the chances are that you'll get away with it, provided the vendor allows you to do so. The vendor's solicitor is bound to advise him not to allow it, though. Are the vendor's things still in the property?

As others have suggested a bit of tidying and painting is fairly low risk, but new windows and kitchen is a step too far.

Annpan

pickledpink wrote: »

Once you've exchanged you're legally bound to complete. If either party pulls out after exchanging they will either lose their deposit (usually 10% of the purchase price) or be liable to pay the other party for their losses.

As for doing work on the property between exchanging and completion, providing the current owner is agreeable to that it shouldn't be a problem. But usually solicitors prefer it if you wait until completion day just in case of any last minute snags; and the fact that the property (and any contents) are not legally yours, and all sorts of complications could potentially arise from that.

Well done PP! That was very useful and not a single insult. There's hope for you yet. :T

whitwori1971

Thanks guys, all comments taken on board.

TBH i was wary of this anyway wifey was pushing, defo wont do any work prior to completion.