What happens before you can exchange contracts?

Panda126

Hi all, I have a question regarding the selling/buying process.
Once the solicitor have all searches ready, offer mortgage ready and enquiries answered what do they need to do before they can say that they are ready to exchange? (when buying a property)

Our developer is pushing us for exchange but our buyers don't seem to be ready and I am not sure what could be stopping them from proceeding. Since two weeks their solicitors keep saying that they are 'reviewing the files'.

eddddy

The best plan might be to chase your buyers - tell them to contact their solicitors to find out what the delay is.

You can ask your estate agent to contact your buyers on your behalf, if you want.

(But sometimes the solicitors get blamed, because the buyer doesn't want to admit what the real problem is - for example, there's a problem getting a mortgage, they're getting cold feet, etc)

Panda126

yeah we've been asking our estate agent every day now but we keep getting the same answer 'files are being reviewed'  

propertyrental

Solicitor reviews all the information he's gathered.
Solicitor writes a report for his clients, highlighting any issues found or explaining any complex aspects.
Solicitor sends all documents along with his report to his clients.
Clients read and try to understand
Clients may raise questions.
Solicitor answers questions
Clients go to parents , parents discuss house and documents 
Clients go home and discuss parents' concerns.
blah blah
some weeks later, clients finally contact solicitor to approve everything
Solicitor moves clients file to 'approved' pile
Solicitor continues working through 'approved' file till client's file gets to the top
Solicitor contacts seller's solicitor to discuss Exchange date
.....
and so on

RedFraggle

Is there a chain below your buyer?

badger09

What’s the the completion date on your new build?

Panda126

There is no chain and the buyer is FTB.
The completion date for our new build is in January.
What are the final documents that the buyer should receive before exchange?

Tiglet2

Is the new build structurally complete?  Does the developer want to exchange now with a long stop date. i.e. no date inserted into the contract on exchange.  Or can a completion date be agreed on exchange?

The final documents are usually the Report on Title - Solicitor's report setting out all the information on the property that they have received.  There will be documents for your signature and return by post, i.e. the Contract, the Transfer and the Mortgage Deed.  There may also be a checklist to complete - just your instructions confirming where any surplus monies are to be paid, contact numbers, forwarding addresses, where keys are to be picked up from etc. 

There may be a senior solicitor who will review the file before exchange, this is to check that all required documents are satisfactory and that signatures match, ID is correctly certified, witnesses are non-related etc. There may be last minute bits that need amending/obtaining.

FTB will be asked to transfer the deposit, assume yours is coming from the property sale. 

Solicitor needs to submit Certificate of Title to the lender to release funds and get confirmation that funds will be released on set date. 

Solicitor needs redemption statement from lender so they know how much to pay off existing mortgage.