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28 day contract

Hi

We have just had our offer excepted for our first house :j

We have been asked to agree to a 28 day exchange of contract.

What exactly does this mean? What are the risks? :confused:


Thank you :o

Comments

  • It just mean your buyer wants you to exchange contracts within 28 days, its quite common with newbuilds but now more and more estate agents will ask it as well. Do you have a chain and if so what position are you in it?
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Hi thanks for the reply.

    We are first time buyers, and the people selling are about to move into a new build.

    Is 28 days possible? What happens if it passes 28 days?
  • silvercar
    silvercar Posts: 49,934 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Marr wrote:
    Hi thanks for the reply.

    We are first time buyers, and the people selling are about to move into a new build.

    Is 28 days possible? What happens if it passes 28 days?

    It is possible, though tight. When arranging your mortgage check that you are choosing someone that can work to your timescale.
    In practice the deadline can propbably be extended. After 28 days they are not going to be able to find a new buyer who can exchange any time quicker than you could with a 28 day headstart, but there is always the risk of someone in the chain going for a higher offer and remarketing.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Hi,.. I thought there was no chain in my case? First time buyer buying from someone buying a new build. so the 28 day 'contract' dosent really mean anything? No risks, losses?
  • Has the new build property actually been built and is ready to move into? Sometimes people buying new builds are still required to exchange in 28 days whether the property is ready to move in to or not. If you are a bit unsure as to whats going on, its best to call your conveyancer/solicitor and have them talk it through with you, IMO they should have been considerate enough to do this in the first place with you being a FTB

    Edit -also if you need to exchange in 28 days you need to have your mortgage application in now - try to avoid Royal Bank of Scotland and Woolwich if you can as you wont exchange in time if you use these companies
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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