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What happens at Exchange?

Terry98 · 2014-02-20 07:41:42

Are the signed contracts physically exchanged or do both solicitors agree verbally? Does the deposit have to be in the sellers solicitors bank account for exchange to happen?

Comments

SmlSave Posts: 4,911 Forumite

20 February 2014 at 8:45PM

In a chain the first buyer has to make sure that the deposit is cleared in the solicitors account. Like kingstreet says the deposit gets passed 'up' the chain.

If you are selling and buying then you normally don't have to have the deposit in cash but its not a hard and fast rule.

Mostly solicitors exchange with the deposit 'held to order' meaning that the initial deposit at the bottom of the chain stays in the first solicitors bank until completion when the full amount gets sent to the seller's solicitors.

Hope this is of some interest and I haven't confused you further.

Currently studying for a Diploma - wish me luck

Phase 1 - Emergency Fund - Complete :j
Phase 2 - £20,000 Mortgage Fund - Underway
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