Exchange signing

Barter

I wonder if anyone can tell me whether it is OK to do the exchange signing on a house we're buying, before the buyers do the same for the flat we're selling?

Or should they be simultaneous?

Are we exposing ourselves to any problems if we go ahead before the buyers are ready?

Many thanks for any info.

sonastin

I think it is OK to sign, as long as your solicitor doesn't actually exchange. From what I understand, the actual exchange which commits you to buying happens when the solicitors phone each other with the signed documents in front of them (follows some sort of set protocol I think) and then the documents are physically exchanged later. So you need to have signed them prior to this but as long as your solicitor doesn't do anything with them until your buyers are also ready to go you should be OK

timmyt

you cannot exchnage on a house you are buying if you are relying on the deposit on the one you are selling, as you have answered your own question. you haven't got it available at that point.

Yorkie1

As Timmyt says, do not commit yourself to your purchase until you know for sure that you will have the funds from your sale.

However, as sonastin says, it is usual to sign the contract documents in advance of anticipated exchange. Then, when everyone in the chain is ready and completion date has been agreed, the solicitors do a phone exchange in sequence. By signing you are not actually commiting yourself to the purchase. You are only committed when you have finally instructed your solicitor to exchange and that has taken place.

Barter

Thanks for replies, feel a bit easier about it now.