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Exchange of contracts

The exchange of contracts is the penultimate step in the property buying process, where you pay your deposit, sign your contract and agree a completion date.

Before the exchange, you will need to ensure:

» You have a formal mortgage offer from your lender
» You have a full fixtures and fittings list from the seller's solicitor explaining exactly what is being left in the home
» You have arranged home insurance cover, starting from the day of the exchange
» Your solicitor has completed all conveyancing necessary
» Your deposit money is readily available

You will be required to pay the deposit into your solicitor's bank account ready for the day of exchange. (If you are paying by cheque, you need to ensure you allow time for the cheque to clear).

Your solicitor will provide the legal paperwork to enable you to buy the property, whilst the seller's solicitor will draw up a contract, on behalf of the seller.

You will be asked to sign the contract and pay the deposit. After the seller has signed their contract, the two solicitors will 'exchange' contracts.

At this stage the purchase is legally binding and you would lose your deposit if you had to pull out, so make sure you are happy with everything before you sign along the dotted line.

Step 8
» Completion