Buying a home involves going through a lot of nitty gritty details. However, when you find yourself at the stage where you are about to exchange contracts with the other party, you may already be seeing the light at the end of the tunnel. However, this is one of the most critical stages of buying a home and it pays to be a little more patient and know what you are getting into before you affix your signature on the dotted line.
If you found this article because you are looking for more information about exchanging contracts, you are in the right place! Here you will find out everything you need to know about the conveyancing process and how you should handle this stage of the real estate process.
Everything You Need to Know When You Exchange Contracts
Once a real estate deal reaches this stage, it may be nearing the end of the transaction. After the contracts are exchanged with both parties signing the contract, it will turn into a legally binding document that will govern what happens next in the sale. Knowing this, you have to be extremely careful before you sign the contract. Here are some of the most common FAQs relating to real estate exchange of contracts and how to handle them.
Why Do Contracts Need To Be Exchanged?
Until the contracts are exchanged and signed by both the buyer and seller, either one of the parties may be able to withdraw from the transaction without facing any problems or penalties. Contracts are exchanged to protect both parties and prevent the deal from falling through.
When Does The Exchange Of Contracts Happen?
Since it will be extremely difficult to withdraw from a real estate deal after the contract has been signed, you need to ensure that everything is in order before you sign. Make sure that you and the seller have made a clear agreement on the offer, have it in writing that you have been approved of a mortgage, have had the property inspected, and other important details pertaining to the sale have been sorted out.
How to Handle This Part Of The Property Transaction
Usually, this part of the process will be handled by the solicitors or conveyancers of each party. This is why you have to be in constant contact with your solicitor during this process to ensure that you will be in the loop about what is happening.
What Happens After the Exchange of Contracts?
The deal will be more or less closed after the contracts are exchanged. At this point, the final checks will be made to the property to ensure that everything is up to par with what you were promised. Also, the name on the deed should be updated using a Transfer of Ownership at the registry.
If you are about to go into this part of the real estate transaction, you are in the home stretch. However, handling this part of the process with care will ensure that you do not end up making a decision that you might later regret. Working with an accurate conveyancing expert will also come in handy to make informed decisions.