The Basic Stages
The 3 Basic Stages
Stage 1
This is from the beginning of negotiations up to 'Exchange of Contracts', and that is the moment when Seller and Buyer make a legally binding commitment to each other as to price, completion date and other matters. Exchange of Contracts takes place when the Buyer's Solicitors exchange a written Contract signed by the Buyer and pay a deposit (normally 10% of the purchase price) in return for an identical written Contract signed by the Seller. Until then the matter is 'Subject to Contract' and neither party is legally bound and anyone can withdraw or renegotiate about price, repairs or other things. Exchange of Contracts will not take place until after all terms and conditions are agreed and you have the Contract document, agreed the completion date and given consent for us to exchange for you. If a party backs out after exchange of Contracts, the other party can sue and a Buyer who withdraws will normally lose at least 10% of the purchase price and often much more, so do not exchange if you have any doubts. Stage 2
This runs from the Exchange of Contracts to 'Completion'. This is the date when the balance of the purchase price is paid to the Sellers' Solicitors, the Seller moves out of the property and the Buyer becomes entitled to move in. Stage 3
This is a process after completion this is when all necessary matters are concluded such as forwarding the Contracts, Deeds and other important documents to relevant parties, stamping of Transfers and registration of Titles at HM Land Registry. Within each stage there are more small steps which have to be taken. From the menu on the left or by clicking the following links you can read about these steps for purchases or sales.
This is from the beginning of negotiations up to 'Exchange of Contracts', and that is the moment when Seller and Buyer make a legally binding commitment to each other as to price, completion date and other matters. Exchange of Contracts takes place when the Buyer's Solicitors exchange a written Contract signed by the Buyer and pay a deposit (normally 10% of the purchase price) in return for an identical written Contract signed by the Seller. Until then the matter is 'Subject to Contract' and neither party is legally bound and anyone can withdraw or renegotiate about price, repairs or other things. Exchange of Contracts will not take place until after all terms and conditions are agreed and you have the Contract document, agreed the completion date and given consent for us to exchange for you. If a party backs out after exchange of Contracts, the other party can sue and a Buyer who withdraws will normally lose at least 10% of the purchase price and often much more, so do not exchange if you have any doubts. Stage 2
This runs from the Exchange of Contracts to 'Completion'. This is the date when the balance of the purchase price is paid to the Sellers' Solicitors, the Seller moves out of the property and the Buyer becomes entitled to move in. Stage 3
This is a process after completion this is when all necessary matters are concluded such as forwarding the Contracts, Deeds and other important documents to relevant parties, stamping of Transfers and registration of Titles at HM Land Registry. Within each stage there are more small steps which have to be taken. From the menu on the left or by clicking the following links you can read about these steps for purchases or sales.