When is the money exchanged

silentbob33

Hi,



I am going through a part exchange on my property with a newbuild and I have a question.



In approx. a months time the builders have a deadline toexchange contracts. We have agreed aprice for my property which is about 32k more than whats left on the my currentmortgage. When the contracts are exchangedthey have also stated they would like a deposit of 17k paying. Does this come out of my 32k or do I have topay this seperatley? I cant ask thebuilders rep as they are off for two days and the last one I spoke to was newand didn’t know for sure. At what pointis the money exchanged, i.e they pay me and I pay them.



Thanks for any info as I am really stressed out by this now.

G_M

There are 2 key dates:

1) Exchange of Contracts. Typically 10% of the purchase price is paid (though a lower amount can be negotiated)

2) Completion. The remaining 90% is paid.

Where 2 contracts are linked (ie a sale and a purchase), the 10% received on the sale is used as the 10% on the purchase (hence the negotiation if the amounts are differenet).

'Linked' = exactly the same Exchange and Completion dates.