A Pre-Exchange Checklist for your Property Purchase
Posted on 27th September 2019
Our solicitors in Preston know that approaching the point of Exchange of Contracts, where your purchase becomes legally binding, is an exciting time. Amongst the excitement, however, it is important to take a step back and ensure that you are 100% happy with the property you are purchasing.
Exchange of Contracts is also known as the ‘point of no return’, and is why our solicitors in Preston have comprised this trusty checklist to help make your decision as to proceeding to Exchange:
- Searches and Survey:
As part of carrying out due diligence on the property, our solicitors in Preston would always advise that both, searches and a survey, are carried out on the property. This is to ensure that any potential adverse issues are revealed and rectified before Exchange and Completion. The searches and survey cover a plethora of issues, ranging from radon gas to damp at the property. Their importance is, therefore, of extreme value in assessing the property you are purchasing.
See our blog on ‘The Importance of Conveyancing Searches’ for more information, by following the link below:
It is the role of your property solicitor Preston to raise any necessary enquiries about the property. Your property solicitor will review the title documentation, together with the searches, survey and any other relevant documents pertaining to the property. Review of the documents will give rise to specific queries about the property, known as the enquiries. If you, as the buyer, have any questions about the property, these can also be raised as part of the enquiries. Upon receipt of satisfactory replies to the enquiries, your property solicitor Preston will then report to you on the same, in written format, to inform you of all the queries raised, and the responses received. You should ensure that you are 100% happy with the same before providing your authority for your property solicitor to proceed to Exchange Contracts.
The big one – 10% deposit and completion monies. It is important that your property solicitor Preston is aware of how the transaction is being funded. Whether this be via mortgage advance, savings, completion monies of a related sale transaction or a gift, as examples, these funds must be cleared funds in readiness of Exchange and Completion. It is also important to ensure that you have provided the appropriate proof of funds to your solicitor in Preston so that, in order to comply with money laundering regulations, your solicitor is satisfied that the funds originate from a legitimate source.
Our solicitors in Preston would advise that, prior to Exchange, you arrange for a further visit to the property to ensure there are no issues you may have missed, and that you are confident in your decision to proceed.
You should ensure your buildings insurance is placed ‘on risk’ at the point of Exchange of Contracts. As of Exchange, you are legally bound to purchase the property on the agreed Completion date, therefore, if the property was to burn down (for example) after Exchange, but before Completion, you would still be legally bound to purchase the property, or what may be left of it. This, therefore, reinforces the importance of having insurance in place to cover in unexpected circumstances.
- A bottle, or two¸ of bubbly to stock up ready for the housewarming parties:
Ok, we know that this is not party to the conveyancing process itself, however, why not be prepared for the celebrations that are to follow Exchange and Completion of your purchase.
If, of course, you have any questions before your property solicitor Preston proceeds to Exchange, please ensure the same are cleared up before Exchange.
The checklist is a very brief overview of the considerations you should have before proceeding to Exchange and Completion of your purchase. This is, more than likely, one of the biggest purchases you will make in your lifetime. It is, therefore, vital to ensure you are confident with the decisions you are making.
If you have any queries regarding the conveyancing process, or would like a fixed fee quote for our fees, contact our team of property solicitors Preston today at firstname.lastname@example.org, and our team will be on hand to assist.
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Tagged as: Garstang Solicitors, Preston Property Law, Solicitors in Lancaster, Your Local Solicitors
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