From Listing to Leaving: Navigating Your Home Sale Through Six Critical Steps: Step 5 The Process of Exchanging Contracts:

When all involved parties reach an agreement, the process moves to the 'Exchange of Contracts' phase. This critical juncture in property transactions signifies that both the buyer and seller are legally committed to the sale.

In England and Wales, the exchange of contracts represents the culmination of the legal proceedings. Beyond this point, neither party can withdraw from the sale without incurring significant financial penalties, including the forfeiture of the deposit and any legal expenses already paid.

Following the exchange and leading up to the completion, you will receive a detailed statement. This document outlines various financial aspects, including solicitor fees and the repayment of any outstanding mortgage amounts. If you are purchasing another property simultaneously, you might also need to arrange for an additional payment to cover any differences.

The final step involves signing the Transfer of Deed, which officially passes the property's ownership upon completion.

Completion Day:

Completion occurs when your solicitor receives the purchase funds from the buyer. Subsequently, any existing mortgages and related costs are settled, and the title deeds, along with the signed Transfer of Deed, are forwarded to the buyer's solicitor.

At this stage, the property's ownership officially changes hands. It is essential by this time you have vacated the property and provided the keys to the new owner, marking the end of your ownership and the beginning of theirs.

Written by Veera Josey, 17th February 2024