What does Exchange of Contracts in Conveyancing mean?

What does Exchange of Contracts in Conveyancing mean?

Until Contracts have exchanged in a Conveyancing Transaction, there is no form of legally binding agreement between the seller and the buyer. Though the common misconception of having your offer accepted tend to give most buyers a false sense of security into thinking that they now have property to purchase with no recourse, this technically isn’t the case.

What is the process of exchanging contracts?

In most cases, the contract for the sale of a property is prepared in two identical parts by the seller’s solicitors. The seller’s solicitors retain one part for signature by their client (the seller) and the other part is sent to the buyers’ solicitor for execution by the buyer. Once each part of the contracts has been signed by their respective party and the appropriate title checks have been carried out – the parties date and physically exchange each other’s parts of the contracts.

Depending on the circumstances, exchange of contracts can be carried out using 4 methods –

  1. Telephone Exchange of Contracts
  2. Personal Exchange
  3. Postal Exchange
  4. Document Exchange

Telephone Exchange is the most common method of exchanging contracts and all our solicitors at Express Conveyancing follow this protocol. It is convenient and quick. With a Personal Exchange, the lawyers for each party physically meet and exchange documents to ensure each other’s documents are correctly signed although this method is not commonly used due to the practical issues involved in arranging and attending meetings. Postal Exchange and Document Exchange with the buyers signed part of the contract being sent to the seller’s solicitor in advance before effecting the exchange.

Why is Exchange of Contracts so important?

As outlined above, it is imperative that exchange of contracts take place as soon as possible for both the seller and the buyer to have assurances of the transaction not aborting. With an average abort rate of circa 35% of all transactions due to the Conveyancing Process taking far too long to conclude, it is imperative client’s choose a Conveyancer or Property Solicitor who treats attention to detail hand in hand with a sense of urgency.

Here at Express Conveyancing, our property lawyers exchange contracts on average in 4 weeks as opposed to the industry standard of 12. We achieve this by using state of the art Case Management Systems and electronic means of communication, which even today most High Street Firms tend to shy away from.

Speak to one of our advisors or Property Lawyers on how we can assist you on your next big property move.

 

What our clients say

Great value for money. Everything went smoothly and I was very pleased with the service provided
Rachel Whitfield
Rachel Whitfield
20:59 12 Oct 18
Excellent! Very responsive, and really helped to push the purchase. There were unexpected delays during the process, but Anthony really helped to reassure me that he was doing everything he could to progress the sale. Ultimately, it all worked out in the end, and I would highly recommend! I would also recommend for auction purposes.
Sean Stevens
Sean Stevens
09:14 21 May 18
Very happy customer. Understanding of our needs and recommended a really fantastic solicitor.
Jack Hearne
Jack Hearne
17:49 12 Oct 18
I have just completed the purchase of my flat with them. They were recommend by the estates agents Phillip Arnold and they were fantastic. My case was handled by Milena who was really helpful and always available on the phone. The online system is also really easy to use. If I buy or sell a property I will definitely be using them again.
Sharon Kelly
Sharon Kelly
18:27 20 Dec 17
I used this service following a recommendation. The online case tracker worked really well. I would recommend this service as it's vital in the coordination between Estate Agencies and between Solicitors. The service proved invaluable in helping progress the conveyancing work efficiently and effectively. Completed the transaction just before Christmas having instructed the Solicitors on the 4th.
Shelly Harrill
Shelly Harrill
16:30 19 Dec 17
Excellent Service. Final Price same as quoted.
A Google User
A Google User
14:26 19 Dec 18
Have used them twice. Both times completion happened in less than 4 weeks, even over Xmas! Totally amazing. They take the stress out of the whole process.
Daniel West
Daniel West
13:04 21 Dec 18
Excellent Service. Final Price same as quoted
Parsa Khamooshi
Parsa Khamooshi
15:54 21 Dec 18
Being a first time buyer they guided me smoothly through the whole process of moving into my first home. Very professional and economical.
Uday Seth
Uday Seth
12:31 24 Dec 18

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