The legal contract for buying and selling a property in the UK is known as the contract of sale. This is a legally binding agreement between the buyer and the seller that sets out the terms of the sale, including the purchase price and the date on which the sale will be completed (the “completion date”).
The contract of sale is usually prepared by the seller’s solicitor and sent to the buyer’s solicitor for review. The buyer’s solicitor will check the contract to ensure that it accurately reflects the terms of the sale and protects the interests of their client. They may also suggest any necessary changes or raise any queries with the seller’s solicitor.
Once the contract has been finalised, it will be sent to both parties for signing. The buyer and seller will both need to sign and return a copy of the contract before it becomes legally binding.
Exchange of contracts is an important stage in the buying and selling process. It marks the point at which the buyer and seller are legally bound to complete the transaction. Once contracts have been exchanged, the buyer will typically pay an exchange deposit (typically 10% of the purchase price) to the seller.
Completion is the final stage of the process, when the buyer takes possession of the property and the seller receives the balance of the purchase price.
What are the different stages of conveyancing?
What’s the difference between a mortgage deposit and an exchange deposit?
