please, please, please explain the chain and contracts to me.(18 Posts)
Hi, if I were you, I would speak to your solicitor about this. It does sometimes get complicated when you are in a chain (no matter the size of it). We have always managed to reduce the chain when we have bought or sold in the past - to a small chain as it can be a pain waiting around for other people and solicitors to get things sorted. They can be so slow !!!
Speak to you solicitor and explain your concerns. If you are worried about loosing your sale on your property - you could always push to exchange and possibly move out into relatives property for a few weeks (put your furniture into storage) ?? We have done this in the past - as we didn't want to loose a sale. Don't know if you are position to do this or not ?
Are you buying/selling through an Estate Agent? If so give them a call and get them to check what stage everybody is at the in the chain. They should find out what everyone's position is (ie is the chain complete at the top-you know it's complete at the bottom with your first time buyers), and they can find a timetable everyone is looking loosely for - exchange and then completion.
It is usual for the chain to exchange at the same time (when it becomes legally binding), with a completion date set for the same day, so moving day is the same for everyone. It is very unusual for exchange and completion to happen on the same day, although possible. Sometimes people are prepared to 'break' the chain if necessary by agreeing to complete on theirs and move out into rented or with relatives, if they are slowing things down for everyone else who is ready.
Does that answer your questions?
Not that unusual to exchange and complete on the same day, btw (I did when I was a FTB), but it would up the stress levels on that day.
Offer to completion - three monthsish. But it is like asking how long is a piece of string. Can be shorter or much longer.
Ok, lots of ?'s. I'll try and help.
You can physically sign the contract without actually exchanging. So once you are happy that all the legal things are in place, you can sign the actual contract and then the solicitor will actually exchange once the other party has signed. You will agree when this will be with your solicitor and he will probably give you a call just prior/post exchange to confirm.
At exchange the purchaser pays the deposit - usually 10% - and after that if either party pulls out, the deposit is forfeit.
You may be able to use the deposit from your purchasers to pass up the chain to your vendors. Not too sure, as I have bee a cash buyer recently.
At exchange, the completion date is normally written into the contract, so you cannot exchange unless you are prepared to vacate your house on that date. If you can do so and move out, you can sell your house when you like, but obviously if you have not secured your purchase, there is a risk.
Re your purchase being slow...Remember, nobody else cares as much about your house move as you. In fact nobody else gives a toss, therefore it is up to you to push it along. You are paying your solicitor a lot of money, so make him earn it. He should be chasing the vendors solicitor and identifying any issues and notifying you. you may then be able to resolve these by nagging the estate agent for the house you are buying. Yes they are working for the vendor, but they only get paid when they sell so would be daft to hold up a sale.
The agent should know the vendor's circumstances, so ask them, or if you are on friendly terms, contact the vendor, but it is vital you know their position so you can push them to meet your deadlines.
Every time someone tells you something or promises something or agrees a deadline, make a note. If necessary follow it up to all parties with an email. Then make yourself a list and follow up the agreed actions.
I have no legal expertise, just bought and sold 3 houses in the last 3 years, so lots of experience!
We accepted offer at beginning of November, exchanged yesterday and complete 6th March. Just 3 in the chain, we're the middle, still seems to have taken ages and despite asking for a quick exchange it was our buyers who slowed everything down and had to be pushed to exchange.
you don't have to exchange and complete on the same day due to that deposit situation.
given that you don't know that it is all happening until you exchange, it is challenging to do both on the same day if you want to organise moves!
as others note, you need to nag and pester, all those professionals will just go to sleep unless you do.
Signing is not the same as exchanging. But it means you are ready to exchange.
Your solicitor will not exchange on your sale without simultaneously exchanging on your purchase.
The things you need in place for exchange to take place are signed contract lodged with your solicitor, mortgage offer in place (or funds if a cash buyer), and exchange deposit lodged with solicitor, normally 10% of the purchase price. Sometimes you can negotiate using your purchasers deposit to forward as part of your exchange deposit.
Your buyers pay a deposit on the exchange of contracts, you then use this to pay your deposit on the house you're buying. If the property youre buying costs more than the one you're selling the amount you have as deposit may not be the standard 10%. It's. Not normally an issue, but your solicitor needs to check with the solicitor of the person you're buying from that they're ok with this.
You want to avoid exchange and completion on the same day, it's way more stressful.
Ask both your solicitor and estate agent to explain the process and the exact situation you're in. They should be happy to make it all clear.
Exchange is when your solicitor gives your signed contact to your sellers and vice versa. Usually at the same time as you do it with your buyers.
Often the sols and agents assume you want 2 weeks between exchange and completion, to organise movers etc.
Quiz your solicitors daily about what the hold up is, and the agent.
If you do try to exchange to buy your house, you will need a plan to pay for it if your buyers vanish. We ended up exchanging to keep the house we wanted, committing to complete in 6 months. We found a new buyer and did it with 3 months to spare, but had to confirm we could get a Buy to Let mortgage on the old flat if necessary.
This should be obvious but can a solicitor exchange contracts without telling me? The reason I am asking it that I have signed and sent back to the solicitor, but may have to pull out due to circumstances and just afraid that solicitor will exchange because it is signed.
littlecrystal - physically, yes he can. You need to make it crystal (haha!) clear to your solicitor IN WRITING that he must not exchange without your express permission - cos once it's done it's pretty hard to turn back.
I think though that generally they would give you a call to check before they actually exchange.
I'm currently waiting to exchange myself and don't expect it to happen until they call to check with me. Plus they need to write the completion date into the contract so unless your sols have that date they won't be able to exchange?
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