Exchange / Completion

allylou2002

I read a post and thought ?I would get some clarification - I am a inexperienced noob when it comes to house buying.

Exchange contracts - once this has happened can a buyer/seller back out?

Is completion when you move?

Can you exchange but then move a few weeks later?

I know my vendor can't move u til may, but if we exchange contracts can we relax knowing that come completion day we will move?

Read so many horror stories!

amfan

allylou2002 wrote: »

I read a post and thought ?I would get some clarification - I am a inexperienced noob when it comes to house buying.

Exchange contracts - once this has happened can a buyer/seller back out?

Not really, it does happen but it is costly to the party that backs out.

Is completion when you move?

Yes, pick up the keys from the estate agents, usually around lunchtime. The seller has to have vacated by the designated time.

Can you exchange but then move a few weeks later?

Yes, you set a date when you exchange that all parties are happy with.

I know my vendor can't move u til may, but if we exchange contracts can we relax knowing that come completion day we will move?

Pretty much!

Read so many horror stories!

Good luck! hope it all goes smoothly for you

G_M

'Exchange' means Exchange of Contracts - ie .... a binding contract is exchanged.

So no, you cannot back out without paying (potentially) huge penalties for breaking the contract..

The contract that is exchanged will specify the Completion date. That is when ownership changes hands. You do not have to move on that date, but it is the earliest date you can move if you want.

The Completion date in the contract can be the same day as Exchange, or a few days/weeks later, or even months later. It depends what the buyer and seller agree.

Now go to your local library and borrow (free) a book on house moving - it will explain all this, and 101 other thngs you need to know too!

Yorkie1

I would consider carefully whether you want a 3 month gap between exchange, if you're thinking of doing this soon, and completion in May.

It happens rarely, but there is always the risk that your mortgage offer may expire, or circumstances occur which you should declare to your lender etc.

allylou2002

Thank you all so much - I feel like an idiot.

We were let down on a property and we a so nervous about this one as we are moving home with my parents as to not lose our buyer!

greenspark

Hi allylou. Don't feel like an idiot - your question is one that I (and probably other buying newbies) would have asked, and it's really useful for those of us at the tentative thinking-about-it stage to read threads like this. All those little questions that we might not think to ask but that add to our overall knowledge and confidence in the process! It's quite daunting when you're just starting.


And thanks to all who contribute answers too


I will probably be along soon with some beginner questions of my own...