In This Guide

Apply for a mortgage

Buying at auction

Buying in Scotland

Conveyancing

   1. Conveyancing

   2. The conveyancing process

   3. Exchange and completion

   4. Costs

   5. Choosing a solicitor

   6. Complaining about solicitors

   7. DIY conveyancing

Find and view

Negotiate

Plan your purchase

Success and failure

Surveys and valuations

To buy or not to buy

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Conveyancing

Exchange and completion

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Until you exchange contracts, both you and the vendor can walk away without any contractual liability.

The contract is a legally binding document that commits all parties to the deal. There's no backing out once the exchange has taken place, unless you have a desire to be potentially liable for significant financial penalties.

When both solicitors are satisfied their work on the contract is complete, they will ask their respective clients to sign the document and send a copy to the other solicitor for signature by the other party involved in the sale. This is the exchange of contracts - the moment you have all been waiting for.

It is unlikely you will be able to exchange contract until all the following have taken place:

• The survey or valuation report has been completed and accepted by both you and the lender.
• You have had a formal written mortgage offer from your lender.
• All the conveyancing work is satisfactorily complete.
• You have agreed a completion date for the sale, which is included in the contract.
• You have settled any outstanding issues with the vendor, such as obligations for the completion of work on the property, and have made appropriate written agreements.

At the point of exchange you normally have to provide funds for the deposit, assuming there is one, as well as any outstanding fees for the work your solicitor has carried out.

The completion date may be anything from the same day as the exchange to several months later, depending on the circumstances of the sale. There are still things to do right up to completion and beyond:

Complete the purchase transaction
On the completion date agreed in the contract, subject to the seller receiving funds, transfer of ownership will take place. This is known as completion.

Transmit the purchase monies
The mortgage company will send the remainder of the purchase funds ready for transfer at the request of the solicitor. This is usually carried out by some electronic means (for which you will of course be charged). This instant electronic transfer that hurtles round the phone lines in the blink of an eye can actually take several hours to happen, so there is sometimes a bit of a delay on the day of completion. You may be able to get the keys before the money arrives, but it is unlikely as the seller's solicitor will almost certainly advise their client not to allow you to take possession of their home until money has changed hands. This can lead to some irritated heels being kicked as you wait outside your new home waiting for a phone call. Eventually, the money transfer will take place, the solicitor and estate agent will take their fees and you will take possession of what - hopefully - will be the start of a very cosy new abode.

Tying up loose ends
Even once you are in, there are still a few things to be done. Your solicitor will need to check the title deeds once more and arrange for them to be registered in your name. In the case of a leasehold property, they need to make sure that your name is on the lease. They also need to get the transfer stamped to officially approve the sale and the despatch the title deeds to the lender.

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