After the exchange of contracts in the UK, the property purchase process enters its final stages. This is the point where both parties become legally bound to complete the transaction. It`s important to understand what happens next so that you can be well prepared for the completion day.
Here`s what you need to know about what happens after the exchange of contracts in the UK.
1. Payment of Deposit
Immediately after the exchange of contracts, the buyer will be required to pay a deposit. This is usually around 10% of the purchase price, although it can vary depending on your negotiations. The deposit is held by the seller’s solicitor until completion day.
2. Insurance
At this point, it is advisable for the buyer to insure the property. While the property legally belongs to the seller until completion day, it`s important to have insurance in place to protect against any unforeseeable events that may occur.
3. Agreeing on Completion Date
The completion date is the day when the buyer takes possession of the property. It is important to agree on a completion date that works for both the buyer and seller. This date is usually set for two to four weeks after the exchange of contracts.
4. Final Checks
Before completion day, the buyer`s solicitor will conduct final checks to ensure that all legal and financial matters have been addressed. This includes checking the title deeds, carrying out searches, and making sure all necessary documentation is in place.
5. Transfer of Funds
On completion day, the buyer’s solicitor will transfer the balance of the purchase price to the seller’s solicitor. This is usually done via a bank transfer.
6. Handover of Keys
Once the funds have been transferred, the seller will hand over the keys to the buyer. The buyer can now take possession of their new property.
7. Registration of Ownership
Finally, the buyer`s solicitor will register the change of ownership with the Land Registry. This process can take several weeks to complete.
In conclusion, the exchange of contracts is the point where the property purchase process becomes legally binding. After this, the buyer must pay a deposit, insure the property, agree on a completion date, conduct final checks, transfer funds, receive the keys, and register the change of ownership. By understanding what happens after the exchange of contracts, you can be well prepared for completion day and ensure a smooth transition into your new home.