Whether you are a first time buyer or have been on the property ladder for some time, the role of contracts is very much a part of the conveyancing process. Contracts govern the process of buying or selling land. These are legal documents which specify the terms, defend all sides and in turn make sure everybody concerned knows exactly where they stand. Contracts play a huge role in property transactions which is why you should understand contracts and what they mean.
A property contract is a legal agreement between the buyer and seller. It explains what is sold, for how much and on which terms. The contract typically includes:
The agreed price
Details of the property
Completion date
Any fixtures and fittings included
Specific Conditions (eg Subject to Survey or Upon Mortgage Approval)
Why Are Contracts So Important?
The clarity that contracts provide to both parties is what makes them essential. When contracts are exchanged, both buyer and seller legally bind themselves to the transaction. It saves any party concerns about buyers having a sudden change of heart, surprise requests or disagreements over what is and what is not a part of the sale. For advice from Conveyancing Solicitors Gloucester, visit a site like https://deeandgriffin.co.uk/personal-legal-services/conveyancing/gloucester/
The Exchange of Contracts
The exchange of contracts is one the major steps in a property transaction. Everyone is free to back out before this point without consequences. When contracts are exchanged, the sale legally takes place and a completion date is agreed. At this point, the buyer will typically pay a deposit (usually 10% of purchase price).
The contracting parties are buying themselves time to prepare for completion. So that means getting the money moved, finalising the mortgage application and arranging the move. On the day of completion, and after all money is transferred to the solicitors, the buyer gets their keys.
Can Contracts Be Changed?
Yes, but only before exchange. The contract is updated with any changes made and both parties have to accept these changes. Post exchange, on receipt of title, changes are rare and only in exceptional circumstances generally requiring a solicitor.
In a nutshell: Contracts lie at the heart of all property exchanges, ensuring protection and peace-of-mind for every buyer as well seller. Knowing their purpose – and the main stages of exchange and completion will give you a greater sense of control over your property journey.
