What happens on exchange?

wksd

Hi all,

I know this is a stupid question but our first purchase didn't really go very well and I don't really remember the stages. Now we are selling and buying simultaneously I have some questions!

On exchange, I am aware that we need to transfer the deposit (10%) is this it?
We are selling with a £40k equity and therefore, does this mean we will just need to transfer the additional 10k for the £50k deposit?

What about SDLT? Do the rest of the fees (EA, Solicitor, SDLT) all get transferred at completion?

AdrianC

You're in a chain, so probably your buyer's deposit will simply get passed up the chain. Your sol will want anything additional in advance, so he knows it isn't going to delay exchange.

SDLT and sol fees will probably be wrapped up together and invoiced later if you're up-sizing. The EA will probably invoice separately - after all you hired them way before the sol, right?

Then, on exchange, all the sols just agree "Yep, we've exchanged", and metaphorically hand the signed contracts over at once. In practice, they trust each other.

Then you sit back, have a little smile, and wait for the big day.

Alter_ego

You should insure the new property from exchange.

SmashedAvacado

Alter_ego wrote: »

You should insure the new property from exchange.

Only if you have agreed the position that risk passes on exchange. in some deals that's less appropriate.

G_M

SmashedAvacado wrote: »

Only if you have agreed the position that risk passes on exchange. in some deals that's less appropriate.

Indeed. Assuming you are using the 5th edition of the Standard conditions of sale, risk transfers at Exchange.

If not, check the contract.

But more generally - you are undertaking a huge financial arrangment. Making sure you understand how it works is just common sense. So

https://www.amazon.co.uk/How-Your-First-Home-Sell/dp/0091935377?SubscriptionId=AKIAILSHYYTFIVPWUY6Q&!!!!!duckduckgo-ffsb-uk-21&linkCode=xm2&camp=2025&creative=165953&creativeASIN=0091935377