How do solicitors exchange contracts?

When you buy or sell a property you will usually sign a contract. The buyer and seller each sign identical contracts. In today’s blog we take a look at the role of solicitors and how they exchange the contracts.

Exchange of Contracts is usually done by both solicitors reading out the contracts over the telephone (details of the conversation being recorded on the contract) to make sure the contracts are identical, and then immediately undertaking to send them to one another in the post. It is possible, though very unusual now, to carry out an attended exchange where the solicitors physically hand their client’s respective part of the contract to one another.

If you are in a chain, your solicitor will do the same thing, but will only release the contract if all the other people in the chain are happy to go ahead. This means if one person pulls out or delays, everything gets held up. The contract release then works its way up the chain until it reaches the top where contracts are formally exchanged and then works its way back down the chain finishing with the formal exchange at the start of the chain.

Once you have exchanged contracts you will be in a legally binding contract to buy or sell the property. If you do not complete as a buyer, you will lose your deposit and you can be sued. Equally though, the seller has to sell or you can apply for an order for specific performance where the court will require the seller to transfer the property to you.

As with any investment decision, when buying a property it’s vital that you do your homework carefully. As well as fully researching the location and market that you are looking to buy in, it’s vital that you seek advice of experts, including surveyors and financial advisors. Alexander JLO, its Partners and employees cannot provide specific advice on choice of location or the market but can advise on all matters legal once you have made a decision to buy a property.

If you are looking for a first rate conveyancing service why not give one of Alexander JLO’s specialist property lawyers a call on 020 7537 7000, click on the get a quote button or email quote@london-law.co.uk for a free, no-obligation quotation? Come and see what we can do for you.

This blog was prepared by Alexander JLO’s property partner Matt Johnson on 21st May 2020 and is correct at the date of publication. Matt has many years of experience of dealing with property work and specialises in new build and shared ownership properties.  His profile on the independent Review Solicitor website and be found here