When to sign contracts and deed of covenant?

user1977

Troy_af said:

canaldumidi said:

Signing commits you to nothing. It's just another task ticked off which might later hold things up.

You are only commited to buy when Contracts are Exchanged, and your solicitor will call you at that point to check you want to proceed. Till then, he'll simply store the signed contract in readines.

Troy_af said:

...
Even more confusing is that they also said in a previous letter that unless they are told otherwise, then the act of me returning the signed mortgage offer is me telling them to exchange contracts on my behalf at the earliest opportunity.

That surprises me. Can you quote the letter? If true, then simply attach a letter to the signed mortgage offer clarifying that your commitment is subject the you confirming you wish to Exchange.

So the letter was referring to the timing of exchange of contracts and whether or not we should exchange before completion or exchange and complete on the same day. This is what it said -

"You must weigh up the pros and cons of this situation yourself but unless you contact us to the contrary then we will take the act of you signing and returning the Mortgage Deed to us as your instructions that you are happy for us to exchange contracts on your behalf at the earliest opportunity."

Now this is a little confusing because in a separate letter they did specifically say that signing the contracts commits you to nothing and we will need your permission to exchange.

Which is still correct, you just need to tell them that (as bolded above).

canaldumidi

So a phone call followed by an email/letter so it's in writing,:

"Please find enclosed our signed mortgage deed for your file. Please note that our signing/returning this to you does NOT authorise you to Exchange Contracts. We will instruct you regarding Exchange at the appropriate time.

Yours sincerly,"

As for the timing of Exchange/Completion, you should as they suggest weigh up the pros/cons of having a gap Vs simultaneous, and then instruct them which you want.