What Happens after Exchange of Contracts

As a copy editor with a specialization in SEO, I have come to realize that many people are unaware of what happens after the exchange of contracts in real estate transactions. While the exchange of contracts is a significant step in a real estate transaction, it is not the final step. Therefore, in this article, we will discuss what happens after exchange of contracts.

1. Completion Date

After the exchange of contracts, the buyer and seller agree on a completion date. The completion date is when the seller vacates the property, and the buyer takes possession of the property. Typically, the completion date is set for between one and four weeks after the exchange of contracts. It is important to note that the completion date is not a moving target, and it should only be changed in exceptional circumstances.

2. Payments

After the exchange of contracts, the buyer’s solicitor sends the deposit payment to the seller’s solicitor. The deposit payment is usually 10% of the purchase price. On the completion date, the buyer must pay the balance of the purchase price plus any additional costs, such as the conveyancing fee, stamp duty, and search fees.

3. Final Searches

Before the completion date, the buyer’s solicitor will perform final searches to confirm any changes to the property or its ownership. These searches include the land registry search, bankruptcy search, and the local authority search. The searches ensure that there are no unknown liabilities associated with the property.

4. Transfer of Ownership

On the completion date, the seller’s solicitor will send the signed transfer deed to the buyer’s solicitor, who will then register the transfer with the land registry. This process will transfer the legal ownership of the property from the seller to the buyer.

5. Keys

After the transfer of ownership is completed, the seller’s solicitor will hand over the keys to the buyer’s solicitor. The buyer’s solicitor will then notify the buyer, and the buyer will have access to the property.

In conclusion, buying or selling a property can be a complicated process, and it is important to understand what happens after the exchange of contracts. After the exchange of contracts, the completion date is set, payments are made, final searches are performed, ownership is transferred, and keys are handed over. Therefore, it is essential to have a professional solicitor who is experienced in real estate transactions to guide you through every step of the process.