Exchange Of Contracts

Question 1

Who prepares draft contract?

Answer 1

Seller - approved by buyer

Question 2

What does buyer’s solicitor need to check before exchange?

Answer 2

Insurance in place
Funds for deposit
Have authority from buyer to exchange

Question 3

What does seller’s solicitor need to check before exchange?

Answer 3

Obtain redemption figure from mortgage provider and check proceeds will cover it
Prepare engrossment of final contract
Ensure authority from seller to exchange

Question 4

Exchange process

Answer 4

1. Solicitors check have client’s signed contract and let each other know when ready to exchange by phone
2. Identify any blanks and agree words/figures to be inserted
3. Agree any handwritten amendments or special conditions
4. Once happy contracts are complete and identical, exchange by entering date and time and other solicitor’s name

Question 5

What happens upon exchange?

Answer 5

Parties legally obliged to complete.

Buyer obtains equitable interest in property - can protect with notice on charges register, or class Civ land charge

Question 6

Undertakings upon exchange?

Answer 6

Both - hold signed contract to the other’s order, and post signed contract that day by first class post or DX

Buyer’s solicitor - send deposit in form specified in contract, eg cheque or electronically

Question 7

How to exchange related properties

Answer 7

Exchange contracts with release - means that if solicitor exchanges on related contract by specified time the first contract will be treated as exchanged, but if not the exchange is cancelled