Frequently Asked Questions (FAQs)

Conveyancing FAQS

Question

I’ve agreed to buy a new property, when can I move in?

Answer

There are two ‘milestones’ in a house purchase or sale. The first is exchange of contracts, when the buyer pays a deposit and the parties become legally bound to buy and sell. When contracts are exchanged, a completion (moving) date is agreed. The second milestone is completion, so called because that is when the outstanding parts of the contract are completed: the buyer pays over the balance of the purchase money and the seller moves out, and hands over the keys and the transfer documents.

On average, it takes about 6-8 weeks after the offer has been accepted to get to exchange of contracts. A typical completion date would then follow 7-10 days after exchange. This period allows time for the buyer’s solicitors to obtain mortgage funds from the lender (which will usually need 5 working days notice to release the funds) and to make final pre-completion searches at the Land Registry.

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Question

I’ve made an offer to buy a property and after I’ve spent money on searches and valuation fees the seller has withdrawn, saying that he has had a higher offer. Can I get any of my money back from the seller?

Answer

No. Until contracts have been formally exchanged, neither side is legally bound to proceed with the transaction.

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Question

I have just exchanged contracts, and am due to complete the purchase next week. What happens on completion?

Answer

The funds to complete your purchase will be sent electronically to the seller’s solicitor by your solicitor, who will let you know when the funds have been sent. The seller will normally leave the keys with the selling agents, who will be authorized to release them to you by the seller’s solicitor when the funds have been received.

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Question

When do I have to pay a deposit on my house purchase, and how much do I need to pay?

Answer

The buyer is expected to pay a deposit when contracts are exchanged. Traditionally, the deposit is 10% of the purchase price, but in practice a deposit of 5% is becoming the norm. If you are buying you will pay the deposit through your solicitor, who will pay it into their clients account and write a cheque on that account to the seller’s solicitor when contracts are exchanged. If the deposit is paid to the seller’s solicitor ‘as stakeholder’ they must hold the deposit and not release it to the seller until completion. However, if there is a chain of transactions, the sale contract will allow the seller to use the deposit towards the deposit on their own purchase, so long as it is ultimately held by a solicitor as stakeholder. This can be a tricky area on which your solicitor will advise you.

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