Exchanging contracts

Jemma_3

Hi

I wonder if anyone can help clarify something for me.

My solicitor is waiting for our mortgage offer from our lender before sending out the contracts for us to sign and return. He has received the mortgage offer by from our lender, but our solicitor says that he cannot send us our contract until he has the original.
Our solicitor has been slack throughout the whole process and doesn't seem to be doing anything unless chased. We are buying a new build and are being chased almost every day for an exchange and completion date as they want to complete before year end.
Does anyone know if it's possible to send these contracts out with a faxed copy of the mortgage offer? He said at one stage it was, but has now said he needs the original?

silvercar

You could sign the contract in readiness but your solicitor is probably erring on the side of caution and avoiding unnecessary cost by you (for his time) if there is a problem with the mortgage offer.

I have known people be so confident of their mortgage offer that they exchange before the offer comes through, but not for the faint hearted!

Jemma_3

Thanks for your response.

I just wanted to know if it was a legal requirement that it has to be the original or just his preference?

silvercar

Don't know if you have to actually sign the mortgage offer, but if so that would be prior to your solicitor arranging the funds transfer ie a few days before completion.

Jemma_3

Does that mean it's not necessarily needed for exchange of contracts?

Sorry if I have misunderstood, but I want to see if all he needs for exchange is the contracts signed and not necessarily the signed mortgage offer - which we could get to him after exchange.

Have I made sense?!

silvercar

Jemma wrote:

Does that mean it's not necessarily needed for exchange of contracts?

Sorry if I have misunderstood, but I want to see if all he needs for exchange is the contracts signed and not necessarily the signed mortgage offer - which we could get to him after exchange.

Have I made sense?!

Technically, all he needs for exchange is the signed contract, the mortgage offer could in theory come later.

It is a bit like asking whether, as your solicitor, he should be acting on your instructions (ie doing what he is told) or acting in your best legal interests (ie waiting till he has the mortgage offer in his hands, so as not to risk a situation where the completion date is approaching and the offer is lost in the Xmas post).

ginandtonic1988

A solicitor/conveyancer should not exchange contracts without a mortgage offer. They not only act for the client they also act for the Lender. In the mortgage offer it gives the solicitor their instruction on several matters to name a few 1. do they need to report incentives, 2. road and sewer agreements ie section 104 and 36's 3. Do they need to report gifts from third parties. Those items to name a few. If they were to exchange and then find out that for example someone was having a large gift of money from a member of their family that would affect their mortgage offer in affect if the bank wanted to they could withdraw the mortgage offer, where does that then leave everyone if you have exchanged, especially if there is only a few days to go before completion??