Exchange and complete on same day

dan5441

Hi
We are due to exchange and complete tomorrow but after reading some posts people say this is not a good idea and 'far too scary' why would this be.
Thanks

averagepunter

Because up until exchange, the seller could still pull out - leaving you all ready to move in with nowwhere to go.

If you're not moving in immediately, or its a buy to let, then I guess this is less of a problem.

silvercar

your standing on your front path with your possessions in the van and the solicitor phones to say your buyer has pulled out!

Or worse, your solicitor phones to say your buyer is dropping the price by 10 thousand do you want to go ahead or not?

I'm sure it won't happen to you but those are the scare stories.

hobo28

It is scarey but since its tomorrow, you've no choice.

We did it recently for our house and it did work out ok. I guess it must be the unscrupulous minority.

sashacat

it's becoming more common, especially in btls, or where the person is in no chain.

Astaroth

The other problem is that it is not sensible to exchange on the house you are buying until you have exchanged on the one you are selling (otherwise you could sign to complete today and then not sell yours and end up owning 2 houses or being sued for breach of contract if your finances do not allow you to complete on the house you're buying without having sold your own).

If you do do the waiting it means each person is waiting for the one before to complete and if the chain is long you then start having problems with getting the complete chain done within banking hours. If you dont then you have one poor person who has sold their house (so have to be out) and havent bought their new house yet so all their stuff in a van and no where to go.

Unless you personally are chain free I would never agree to an exchange/ completion on the same day.

AndrewSmith

There are some occaisions where it is not possible to do anything else.

The most common of these being when one party is obtaining 100% finance. They then have no choice but to exchange and complete simultaniously as they have no deposit to put down at an earlier exchange of contracts.

This is normally the reason for someone requesting both on the same day. Quite common with first time buyers.

Andy

welnik

I have a question along the same lines as this thread.

I have read somewhere that when you exchange contracts you have to hand over 10% as a deposit. I have a first time buyer buying my home and I am buying a vacant house. Does it mean that I will exchange contracts with my purchaser and they will have to pay 10% to my solicitor? Does my solicitor then use this 10% as a deposit for the house I am purchasing? It would be about £4,000 short so I am wondering if I have got to find some money before hand.

its all very daunting!

cheers
Welnik