Is this enough time exchange and completion + deposit??

pault123

I am exchanging contract tomorrow and paying my deposit, my solicitor prefers bankers draft but I havn't had time to get one sorted so its going to be a cheque. I want completion to take place a week tomorrow.

How does it all work? Can exchange of contracts take place without the cheque being cleared? If the cheque has to be cleared does this mean exchange of contracts would take place early next week and we could still opt for completion on the friday 3-4 day gap between exchange and complete.

My solicitor is also waiting upon written confirmation from the vendors solicitor on money I will be paying towards the oven, fridge/freezer and some other f+f's, totalling £250. Until my solicitor has this she said I can't pay this £250; can this aspect hold up the exchange/completion?

How did you guys pay your deposit cheque, bankers draft, electronic transfer?

Cheers, Paul

Joe_Bloggs

I had the same jitters.
Don't use the post and hand deliver stuff to your solicitor if you can. You can grease the wheels and make your financial transactions occur faster if required. Trust your solicitor with your money as you will have probably paid for anti fraud insurance and superfast money transfer, once the solicitor has it, in the fees. They know what has to happen and can contact each other or their assistants at will.
J_B.

malteser

hi
i'm pretty sure that cheques have to be cleared funds before exchange can complete, you should be able to speed things along if you ask your bank to do a same day transfer to your solicitors bank (the charge for us with first direct was £21) but its worth doing if you need that money to arrive asap. Also any remaining monies (remaining deposit, solicitors fees, f&f etc ) will need to be showing as cleared prior to completion ideally the day before.

your solicitor should be able to give you all this info although if they are anything like mine its like getting blood out of a stone! good luck and just keep bugging your solicitor.

Debt_Free_Chick

I agree. The funds ought to be cleared. The main reason being, that if you back out after exchange, then the buyer can keep your deposit. Clearly, that won't work if the funds haven't cleared.

It may not be a problem ... speak to your solicitor

Woods8

Yes the funds definitely have to be cleared b4 exchange. The fixtures and fittings will also need to be sorted b4 exchange can take place. Yes Contracts could be exchanged early next week with completion say for Friday providing any Mortgage Advance can be obtained within that time scale.

zzzLazyDaisy

It is worse than that - the solicitor MUST pass over cleared funds for the deposit. The way they do that is to send a cheque on the solicitor's office account. So your cheque goes into client account, when the funds are cleared they are transfered to office account, and paid from there. That guarantees to the other solicitor that the cheque won't bounce (or if it did, it the sol would be in big trouble and the funds would be covered by the solicitor's indemnity insurance).

So, IF the sol proceeds with an uncleared cheque from OP s/he will be accepting liability if OP's cheque bounces. Sound likely? Nope!

If cleared funds are not available, exchange will be delayed until the cheque has cleared and funds are available.

pault123

malteser wrote:

your solicitor should be able to give you all this info although if they are anything like mine its like getting blood out of a stone! good luck and just keep bugging your solicitor.

Malteser are you sure were not buying the same house! Everything that has happened throughout your house purchase I have been through as well, unreasonable f+f's negotiations, my solicitor i would say like blood out of stone lol very eccentric, with a bad attitude and I always get the feeling when I call they say anything to get me off the phone as fast as possible as they have more important issues!

I am too considering changing the locks - you beat me to the post AND I have paid my £4 on the land registry site to have a nosy lol.

Think were both on the home stretch now about to complete

Thanks for all the replys guys, I ended up getting a CHAPS transfer when I went in today and he said my cheque wouldn't be good enough for completion next week, cost £18 and ive had to take out home insurance today as well to satify that part of the process, it had totally slipped my mind :wall:

Now its time to trawl the net (might just go straight to Cavendish online) and take out a life insurance policy!!

Paul

its one thing after another :think:

Bossyboots

zzzLazyDaisy wrote:

It is worse than that - the solicitor MUST pass over cleared funds for the deposit. The way they do that is to send a cheque on the solicitor's office account. So your cheque goes into client account, when the funds are cleared they are transfered to office account, and paid from there. That guarantees to the other solicitor that the cheque won't bounce (or if it did, it the sol would be in big trouble and the funds would be covered by the solicitor's indemnity insurance).

So, IF the sol proceeds with an uncleared cheque from OP s/he will be accepting liability if OP's cheque bounces. Sound likely? Nope!

If cleared funds are not available, exchange will be delayed until the cheque has cleared and funds are available.

You are not allowed to transfer client's money into office account. There is no reason to send an office account cheque, a client account cheque is just as good. In fact it is better as that is the cheque that cannot bounce. A solicitor's bank can refuse to pay office account cheques as they do not know at source that the money is the client's, indeed because you are not allowed to put client's money in office account they are entitled to assume it is not. The funds still have to be clear as otherwise they would be using another client's funds to make the payment. If the original cheque then bounced, the solicitor would have to make good the payment into client account themselves.

malteser

Hi Paul,

Yes it does sound very similar doesnt it! we complete on the 28th when do you?

got my fingers crossed for you.
m

pault123

29th LOL! Bank hol weekend to get everything moved and sorted :beer:

All the best

Paul_the_Painter

Don't know if this is too late for you, but my solicitor is taking funds out of my bank account on my debit card! Surprised me too that did, as I am a cash buyer for a shared ownershiop place,the balance for the house will also be paid on my debit card, saves all the hassle of bankers drefts, and waiting for cheques to clear. Of course in true MSE fashion the money will be earning ME interest until the day of completion.