What exactly is exchange and completion?

DGJsaver

SpottyWellies wrote: »

If you have accepted an offer on your house, you either need to find a house you want to buy and have an offer accepted on it or plan to make other arrangements such as moving into rented.

You become a link in the chain.

I understand that , but at what point does work STOP on the sale ? (assuming have found nowhere)

DGJsaver

dzug1 wrote: »

The process stalls when you don't exchange contracts because you can't commit to the sale

And presumably , at that point , the buyer issues some sort of time frame ultimatum?

lessonlearned

DGJsaver wrote: »

How does all this work , if you have accepted an offer on your house , and have swopped solicitor details , but havent found anywhere to live , where does the process `stall` , for want of a better term....?

This is a classic cause of delay. Vendors refusing to get out of the property and holding everyone up whilst they faff around looking for a house .........

lessonlearned

DGJsaver wrote: »

I understand that , but at what point does work STOP on the sale ? (assuming have found nowhere)

When you reach stalemate. Then either everyone sits around twiddling their thumbs, or someone gets fed up waiting, withdraws and then the chain collapses.

lessonlearned

DGJsaver wrote: »

And presumably , at that point , the buyer issues some sort of time frame ultimatum?

Yes. Or you walk away.....

welshwizard1927

Thanks everyone! Seems like a bit of a daft question now but very helpfully explained!!

MoneyMate

I have just had my sign all the paperwork for moving meeting with my solicitor, I was told that if you are in the middle of a chain, not a first time buyers or right at the far end you should insure Both the one you are selling and the new one you intend to buy Between Exchanging contract and Completion.

Certainly a shock to me :eek: apparently this situation has only happened in the last 2 years.

Can anyone else shed light on this information PLEASE> :beer:

monty-doggy

I've not been asked to do that.

lessonlearned

You will need to insure your new property from Exchange of Contract.

You also need to maintain the insurance on the property that you are selling until Legal Completion.

Yes I'm afraid they do need to overlap.

monty-doggy

Oh as in building and contents? Yes I'm doing that. Lol.