28 day contract exchange

Andrew_Flintoff

Guys

I had an offer accepted on a property last Monday and was informed it was subject to a 28-day contract exchange. What does this mean?

I have now had the mortgage agreed, solicitors instructed and survey done/successful, so I believe things to be moving along nicely.

The problem is that the house still has "for sale" on the sign and hasn't had a public notice put out.

Is this normal?

Premier_2

It means you have 28 days to exchange contracts. Until you do this you haven't bought the property, hence why the for sale signs still exist.

Explain this to your solicitor who will advise you further

Andrew_Flintoff

So even though I've paid out money I could be gazumped at any time?

Premier_2

You haven't paid the seller anything. You will pay 10% on exchange. Until then anything can happen.

Speak to your solicitor and get the contract exchanged asap if you think everything is in place

Radiantsoul

You can ask for the property to be removed from the market if your offer is accepted. If you don't they can still market it and might pull out.

hethmar

Is it a repo? If so, the agents will advertise the property right up to exchange and also have to put an ad in to say what offer they have received from you and inviting further offers.

Dont worry too much, once you have instructed a solicitor, got your mortgage offer and the survey done, its very very unlikely the vendors will look elsewhere, even if they receive a higher offer. But do let your solicitor know about the 28 days.

Z1ppy_2

Afternoon,

We had same position when we bought our first flat. property was a repo and we were first time buyers with mortgage offer in place. Made the offer on 4th January and eventually completed on 4th May!!

there were problems with the lease hold for us but at no point did the vendor suggest they were going elsewhere! at the time, the EA also said whilst they had to keep the property for sale, they were not actively marketing it! theres no point in selling it twice was their view!!

you are obviously moving forward the sale and not stalling so if i were the vendor i wouldn't be bothered if we completed in 35 days! its still a very quick sale!!!

zone

They maybe waiting until you have exchanged contracts before they put up a sold sign. With so many people changing their mind about buying or gazundering its no surprise. But if everything is going smoothly dont worry it will be yours soon.

Robert_Sterling_3

Andrew_Flintoff wrote: »

So even though I've paid out money I could be gazumped at any time?

Yes you certainly could.
Note also 10% deposit is the norm but it can be more and it can be less.
When I moved in 2009 I accepted a 5% deposit for my house and this money was passed on to the owner who was selling to me as my deposit.
The fact that you pay a certain amount as a deposit is not the end of the matter. If after the exchange of contracts you back out then the vendor may require you to reimburse his expenses even if they exceed the amount of the deposit.

Premier_2

Robert_Sterling wrote: »

...Note also 10% deposit is the norm but it can be more and it can be less....

Why would anyone be expected to pay more than 10%?
Legally 10% is due on exchange, not a penny more.

Agreed it might be possible top pay less at that time, but with most mortgages now requiring at least 10% equity and I don't think the OP is depending on selling a property to buy this one, then I'd be surprised the seller would accept anything less than 10% either.

Andrew_Flintoff

Thanks all.

We have the 10% deposit, the house has been on the market for a few months before we made our offer so presumably all should be OK.

Thanks for the words of advice.