Exchange, Survey Complete - right order

Catbells

Can someone please advise me which is the best order of event when buying a house which I'm just starting to do.

We agreed a price. Their solicitor has contacted mine and I am now arranging a survey to take place in the next few days. Should the survey precede the exchange of contracts, the other way round or doesn't it matter? Thanks.

Leory

Survey first.
it may throw up issues which make you want to look elsewhere or negotiate on price, before the exchange of contracts stage

vectistim

Exchange is when you are legally committed.
Completion is when ownership transfers - the current owners move out and you (presumably move in)
Do you want the survey after you're legally committed, or after you've already moved in, or would you like a survey before you commit yourself?

Are you having a mortgage? If so it would be best to get that confirmed before spending money on a survey (if there is a mortgage the lender will want its own mortgage valuation)

pararct

The survey is obligatory if you intend to secure a mortgage as your lender will need it for valuation purposes.

Even if you don't need a mortgage to buy the property it is always best practice to have one done. Unless you are already a master builder or chartered surveyor.

Depending on the type of survey you commission it will tell you any inherent faults in the structure right from the point the ridge tiles need re-pointing to the fact there is progressive movement and he expects it to fall down at some point. (This last one is very unusual..)

Once the results are in if it throws up particular problems it is ammunition to re-negotiate the price or to request the vendor put the problem right before purchase.

Once all that is out of the way yours and his solicitor will do the required legals (yours will need a LA search to see if they intend to build a new motorway across your back garden) and the usual questionnaire about who owns what fence ect.

Once all that is out of the way then the deal can move to exchange where 10% (or otherwise agreed sum) is paid over as a deposit to purchase. At the same time a date is agreed when completion of the contract will take place where the remainder is paid across and the property becomes yours. This could be on the same day or a week later. You are committed once exchange has taken place and to pull out will cost you considerably.

Your solicitor will tell you to arrange buildings insurance from the moment you exchange.

You can appreciate where a chain of properties are involved it can be quite a task for all the solicitors to get all their ducks in a row to proceed to exchange.

Catbells

Thanks. Ive just sold so am aware of much of what you wrote here but I wasn't aware that exchange of contracts was such a large commitment from the buyer's point of view - having been a seller only before this.

When I sold and after the survey took place I had to reduce a bit and am hoping this may happen now that I am a buyer. I'm wondering what sort of things will cause this reduction to happen. I mean is it mainly 'big' things like structural problems, rising damp, dry rot etc or can it be a lot of smaller things too. I'm also hoping my solicitor will know and be able to advise but he costs!!! Thanks.

Am cash buyer so don't have a mortgage.

hazyjo

Can't really drop for everything that needs doing or for things that are a bit old, but if say the roof or electrics need replacing, you might be able to get them down all or some of it. tbh, it's not always a 'saving' as such, as if you have to drop for something, the chances are it will actually need doing urgently so you'll have to spend it anyway! Wait for the survey and see what's flagged up. Never heard of a 'perfect' survey where nothing's noted before, you just need to assess what's urgent or expensive - and get a specialist in for any quotes asap.

Jx