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Contract in the post?

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Kayalana99
Kayalana99 Posts: 3,626 Forumite
First Anniversary First Post Combo Breaker I've been Money Tipped!
in House buying, renting & selling
Not sure if I'm right, but my solicitors have sent me an 'agreement' for us to sign, which if I'm reading right, says that if we sign it and back out that we would have to pay 10% of the price (that said the wording isn't exactly 100% clear to me so that may be me misinterpreting it)


Does this sound like the contract that would be exchanged? I thought we had to go in person to sign it + we haven't received all the information about the property yet. Signing of contracts was due around 20th March to exchange on 28th so am I getting mixed up with something? We are only on the end of week 4 although the mortgage has been officially approved and we already had the searches so just waiting on a few bits.

My main concern is if we sign this, then something comes back that we can't complete on (say they can't produce some of the documentation) that we'd be screwed?
People don't know what they want until you show them.

Comments

  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    Exchange of contracts doesn't happen when you physically sign the bit of paper, it happens when the solicitors agree it happens (in consultation with you). But before they can do that, they need to have the signed bit of paper. So you sign it, send it back to them, and they keep it on file until they reach the relevant stage in the transaction. They should be explaining all of this to you.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Yes, its the contract that will be exchanged when all the stars are aligned.

    If as you say "something comes back that we can't complete on (say they can't produce some of the documentation)" then you wont be screwed because your solicitor wont exchange.

    Your solicitor is just getting everything lined up so they are ready to go when everyone else is ready. What they dont want is, its all ready, they say come in to sign and you say "sorry I"m on holiday in Brazil for three weeks". This way avoids hold ups.

    Indeed before exchange, once the solicitor thinks its ready, they will usually give you a call to ask you to confirm you wish to go ahead. Might not be on the day might be a little while before hand "we are nearly ready can you confirm you want to go ahead". Thats not actually required since signing the documents indicates you wish to exchange, but most will do this as "belt and braces"
  • eddddy
    eddddy Posts: 16,442 Forumite
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    Kayalana99 wrote: »
    I thought we had to go in person to sign it...

    ... and just to add, you don't have to go in person to sign it.

    The contract can be signed by you and witnessed, then sent back by post.
  • ThePants999
    ThePants999 Posts: 1,748 Forumite
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    I used a solicitor hundreds of miles away. I certainly didn't go in person to sign ;)
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    [FONT=Verdana, sans-serif]But do read the contract to make sure its the right people buying, the right house and at the right price. Solicitors have been know to make errors, mine got the price wrong on the 1st letter they wrote.[/FONT]
  • Margot123
    Margot123 Posts: 1,116 Forumite
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    I signed my contract, and completed the TR1 form, 4 months before exchange.
    My solicitor had marked in pencil 'do not date' in various places.

    I think it's the sign of a good solicitor, not leaving things till the last minute.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Great advice from Tom99. I recall one of us had our name spelled wrongly on the contract might seem minor but several years later when you sell, things like that can cause all sorts of holdups.
    Happened with the first house I sold there was a mistake which dated back about 3 sales and my solicitor was the first to spot it (or take notice of it) and insisted on it being fixed and it added weeks to the process (someone had put something like 1865 instead of 1965 on some document despite the fact the house wasn't built until 1905 so it was obviously a typo)
  • bouicca21
    bouicca21 Posts: 6,514 Forumite
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    The important thing (after checking) is to sign but not date. It will be dated at the point of exchange.
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