Once an offer on a property has been officially accepted, the exchanging of contracts still needs to take place before completion. To begin with the solicitors acting both for the buyer and for the seller will need to finalise the contract terms.

Once final searches have been carried out, the contracts need to be drawn up and then after having been signed, they will need to be 'exchanged' between the buyer and seller.

It is at this point that the property deal becomes legally binding. The seller cannot accept a higher offer as long as the buyer has negotiated a lockout stipulation (standard in many contracts but something to watch out for). By the same token, the buyer is also legally obliged to purchase the property. A deposit (around 1% of the purchase price) will usually have been put down on the sale so if you decide not to take on the property at this stage, the deposit will not be refunded.

Contract Completion

Once the contract has been ‘exchanged’, the actual completion of the contract still needs to take place before everything is signed and sealed.

This contract completion process involves transferring documents from the seller to the buyer, so that ownership of the new property is formally handed over. Once this transfer document has been agreed by both parties, you will be another step closer to owning your own home.  

The buyer will also have to pay stamp duty at this stage, which is the land tax paid by anyone buying residential property.