exchange of contract question

littlened

ok, so I think on Monday the mortgage company will agree they have everything they need are ready to inform our solicitor that they're ready to go.

I'm just wondering what is involved during the exchange of contracts? i.e. do we have to sign something, or will our solicitor be using something we've already signed?

A couple of weeks ago our solicitor sent us a load of documentation and a financial statement. We signed it all, and we've paid all monies they require from us, which includes the deposit.

We were meant to complete yesterday (Friday), but at the last minute the mortgage company sprung it on us that they needed a structural engineers reports on some cracks in the building. We've emailed them the report and an original will be with them on Monday morning.

I'm wondering if we'll be able to complete for Thursday, will the exchange of contracts hold anything up or not?

We don't want to complete on Friday, we've had enough bad luck buying this house so we're not willing to complete on Friday 13th...

Wickedkitten

They should have sent you out your sale contract to sign along with the mortgage offer and then they just send your signed contract to the sellers solicitor and they send their contract to yours.

littlened

Wickedkitten wrote: »

They should have sent you out your sale contract to sign along with the mortgage offer and then they just send your signed contract to the sellers solicitor and they send their contract to yours.

Ah great, I take it they have to post that then.

So if we get the go ahead from the mortgage company on Monday, then the contracts need to be posted to each other, so if the post man is on form, we could exchange contracts the day after?

chickmug

littlened wrote: »

Ah great, I take it they have to post that then.

I have known plenty of cases when the buyer or the seller or both actually transport the contract around in their cars. Even where the distances have been quite long. Usually can happen when someone in the chain getting a bit off hand and threatening to pull out or even cases where a deadline is looming to sign kids up for a certain school.

Weather looks OK next week for a drive;)

Robert_Sterling_3

littlened wrote: »

We were meant to complete yesterday (Friday...

Do you mean "exchange contracts".

When you exchange contracts the contracts will state the date on which completion will take place. Usually this is 4 weeks later but it can be more or it can be less.

Richard_Webster

Do you mean "exchange contracts".

When you exchange contracts the contracts will state the date on which completion will take place. Usually this is 4 weeks later but it can be more or it can be less.

Er, well, when I started learning conveyancing in the early 1970s 4 weeks may have been normal, but the typical time is 10-14 days nowadays, but it can be any period that everybody involved is happy with. Sometimes we exchange and complete on the same day.

Assuming you have signed everything you need then the main constraint will be how long it takes your solicitor to get the money from you mortgage lender. He will need to send them a certificate of title. Sometimes the money comes the next day, but often about a week's notice is needed. He may send off for the money before contracts have been exchanged but if he does then he will probably warn you that he might end up getting the money and having to send it back because someone else isn't ready!

If your sellers are buying another property then it will be how long their solicitor needs. If the time-scales get very short then people don't like arranging removal men before contracts have been exchanged because they may have to pay a cancellation fee if the exchange doesn't take place with completion on the day they want. Even if the place is nealry empty the seller may need another weekend to remove his remainig items. So all that kind of things needs ot be checked - do not make any assumptions about how quickly it can all happen. Exchange hasn't happened until it has!

littlened

Richard_Webster wrote: »

Er, well, when I started learning conveyancing in the early 1970s 4 weeks may have been normal, but the typical time is 10-14 days nowadays, but it can be any period that everybody involved is happy with. Sometimes we exchange and complete on the same day.

Assuming you have signed everything you need then the main constraint will be how long it takes your solicitor to get the money from you mortgage lender. He will need to send them a certificate of title. Sometimes the money comes the next day, but often about a week's notice is needed. He may send off for the money before contarcts have been ex cahnged but if he does then he will prbably warn you that he might end up getting the money and having to send it back because someone els eisn't ready!

If your sellers are buying another property then it will be how long their solicitor needs. If the time-scales get very short then people don't like arranging removal men before contracts have been exchanged because they may have to pay a cancellation fee if the exchange doesn't take place with completion on the day they want. Even if the place is nealry empty the seller may need another weekend to remove his remainig items. So all that kind of things needs ot be checked - do not make any assumptions about how quickly it can all happen. Exchange hasn't happened until it has!

Thanks, some good info there.

The house we're buying is a repossession, so the only thing that will hold is back is likely to be how long it takes the mortgage company to release the funds.