Meeting with solicitor.

VKay

Please help!
Have received solicitor's letter this morning (Saturday) asking us to make appt. to see them 'to go through the contract papers'. it also says 'please arrange to bring any necessary funds for the deposit needed'.

I don't know what this means! Is this meeting to 'exchange contracts' ? Will I need my entire deposit ready to access instantly in order to exchange (our deposit is about 30% of the value of the house)?

I know I need to ask solicitor but obviously can't til Monday.
Any answers?!

jhe

hi. we went to see solicitor friday. had to take passports for i.d. arranged telagraphic transfer of deposit to the solicitors account with my own bank. as we are due to exchange monday. we signed the exchange contract ready for monday,and the solicitor read through mortgage contracts and house contract explaining everything to us.

VKay

Thank you. Are you paying your entire deposit on exchange?

DVardysShadow

VKay wrote: »

Is this meeting to 'exchange contracts' ? Will I need my entire deposit ready to access instantly in order to exchange (our deposit is about 30% of the value of the house)?

The meeting will not be to exchange contracts, it is either for you to sign or for outstanding issues to be identified before you sign. Careful use of terminology is required here. The 'contract deposit' is negotiated between the 2 parties by the solicitors and is usually in the region 5% to 10%. Any other money of yours which you put in is not the contract deposit. You need to be able to make your funds mobile quickly now.

jhe

well we were told 10% of the house price was due as a deposit on exchange {we are putting 25% deposit altogether} then the further amount was due to be paid before completion can take place. my bank charges £24 for each telegraphic transfer so i paid the full amount. we are due to complete next week. the money transfered is paid into a holding account and we have been assured if there are any problems with exchange we will be refunded.

VKay

I am terrified of losing my deposit somehow- it's 5 years of solid saving!

I'll empty my ISAs asap then.

VKay

JHE have you organised your buildings insurance already?

jhe

we had the same worry. but you have to pay deposit before exchange can take place. once contracts exchanged both sides are commited to complete
we were told by solicitor we had to insure the house on exchange of contracts even though we dont complete that day. dont think mortgage will be released unless insurance in place. our solicitor needs to check to see if we are insured

G_M

Just so you understand how it works.
You meet solicitor. He goes through everything with you, identifies any issues etc, checks your ID. He has to have the deposit in his account (this is NOT the full amount of cash you are contributing to the purchase (known as 'deposit') it is the 1st installment, usually 5 or 10%(confusingly known as 'deposit').
You will sign the contract which he keeps (assuming you are happy to proceed). You will also tell him what date you want for Completion or what gap you want between Exchange and Completion (anything from same day to 4+weeks).

He then talks to the solicitor for the other side, who has been doing a similar process with his client. You do not need to be present for this as you've already signed everything. They agree a date for Exchange, and for Completion, and each add those dates into the contract (which you've already signed).

Then they do a 'telephone Exchange'. IE they speak by phone and agree that Exchange has taken place. They each log this in their files, and according to Solicitors regulations this is legally binding even though the physical contracts have not been swapped.
The Buyer's solicitor telagraph's the 10% deposit to the vendor's solicitor.
They then send each other the signed contracts.

The buyers solicitor then makes sure he has the mortgage money, and you need to give him any additional balance (ie purchase price - mortgage - 10% deposit already paid) (I'm ignoring the solicitor's costs and expenses which also need to be factored in...)

Completion takes place (usually) some time later (on the agreed date in the contract), on which date the buyers solicitor telegraphs the balance of the purchase price (ie the mortgage money + the rest of the money the buyer is contributing.

Hope that helps......

VKay

Thank you GM that is great!!

I presume when you are talking about 5% or 10% you mean of the value of the house (not 10% of total deposit?)!

Should I be able to prove the building is insured somehow?
How do i know when to insure it from?


Sorry loads of questions.

G_M

I presume when you are talking about 5% or 10% you mean of the value of the house (not 10% of total deposit?)!

Correct. 10% of purchase price (which hopefully is its value....!!!)

Should I be able to prove the building is insured somehow?
How do i know when to insure it from?

You'll need to insure from the date of Exchange - agree this with your solicitor. He may need proof as the mortgage provider may require this (assuming he is also acting for the mortgage provider). Ask him on Mon. Don't be afraid to ask him questions. You are paying him so he works for you!