Should we Exchange on Our Purchase Before our Sale Completes

sh856531

Hi all
We are in a position where we will sell our current home and then rent for a few months whilst our new build is made ready.
We are going to exchange our sale tomorrow with completion to take place a couple of weeks later. Not actually sure why our buyer requested that, but they did.
The house builder we have purchased from are obviously very keen for us to Exchange contracts with them and technically they could withdraw various incentives if we don't do so as quickly as they want.
Given that we won't actually get the money from our sale for another couple of weeks should I delay exchanging on our purchase? I actually have enough money on hand to exchange anyway - however I don't know if that is unadvisable in case something unexpected happens with our Buyer between exchange and completion. My understanding is that we have their 10% on deposit so there is some protection even if they did pull out, however I'd imagine stranger things have happened in the past year
Any advice appreciated

Seashell517

If you haven't exchanged on your sale, then your buyer could walk away at any point. So no, do not exchange on your purchase until you've exchanged on your sale, unless you can afford the purchase without making the sale.

Your solicitor should not allow you to do this anyway...

davidmcn

Seashell517 said:

If you haven't exchanged on your sale, then your buyer could walk away at any point. So no, do not exchange on your purchase until you've exchanged on your sale, unless you can afford the purchase without making the sale.

Your solicitor should not allow you to do this anyway...

That wasn't the question. They are proposing to exchange on their sale first, their question is whether they should wait until the sale has completed.

OP, it's incredibly rare for transactions to fall through after exchange (ask your solicitor how many times in their career they've ever seen it happen) so hardly a significant risk - and obviously the norm in a chain would be to exchange on all transactions simultaneously, so you do take on the risk of your sale not completing. But if you can delay without the builders actually walking away (unlikely) then why not?

sh856531

OP, it's incredibly rare for transactions to fall through after exchange (ask your solicitor how many times in their career they've ever seen it happen) so hardly a significant risk - and obviously the norm in a chain would be to exchange on all transactions simultaneously, so you do take on the risk of your sale not completing. But if you can delay without the builders actually walking away (unlikely) then why not?

Appreciate the advice - thanks
I don't think the builder would walk away, however I gave them my word that we would exchange with the this week. I don't like going back on my word but wanted to understand the relative risks. 
Many thanks