Q: What is a contract for the sale of a property?
A: A legally binding document between a seller and a buyer, where the seller agrees to sell and the buyer agrees to purchase a property on an agreed date.
Q: What is exchange of contracts?
A: Exchange of contracts legally commits both parties to the sale and purchase and sets the completion date. This occurs when both conveyancers have all signed paperwork, the survey has been completed, any mortgage arrangements are in place, and all enquiries have been resolved. Until exchange, either party may withdraw without financial penalty.
Q: What happens if the terms of the contract are breached?
A: If completion does not occur on the agreed completion date, the defaulting party must pay interest to the other party at the agreed contractual rate (usually 4% above the base lending rate of the major UK banks). They may also be liable for contractual interest, all additional costs incurred by the seller or buyer, and any other parties in the chain. Such costs may include furniture storage and temporary accommodation, and these expenses can be extremely high.
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We can help you navigate each step with confidence and will work tirelessly to ensure a smooth process. To learn more about how our solicitors can help, please call us on 01329 822 333
