Exchanging and Completing

[smurfchops]

Once contracts have been signed and exchanged, how long before we have to pay in full for our new house ? And will we be asked for a deposit ?

[bednobs]

you can set the gap to whatever you (and your buyer/seller) want. Some people do it the same day, some have months in between

[Eve]

Bear in mind though that in the usual conveyancing process, once you exchange contracts on an agreed completion date, that date is legally binding and there will be penalties under the contract for any late or lack of completion which can be significant (from daily interest rate to loss of deposit and more in certain circumstances).

So, you need to make sure that everything is ok'd and in place so that there is no problem with all monies being in place (cleared in your law firm's account) in sufficient time for completion from you, your lender etc...

It is usual to pay a deposit on completion, it's the seller's security. Obviously, if you exchange and complete on the same day then it's pretty negligible as the whole amount will be paid across in any event. It's very rare for a deposit not to be required.

[bednobs]

jenna, did you mean on exchange? i didn't think it was usual to pay a deposit on completion - i thought it was usual to pay the whole amount

[Postdog]

I didn't pay a deposit at any stage. On completion the lot was paid.

[ubasses]

deposit is usually payable on exchange, about 10%. If you are selling a property as well their deposit on your property can be used. Completion should take place within 4 weeks but could take place on the same day as exchange if all parties agree.

[Eve]

Sorry, I meant exchange, my apologies, shouldn't type when I'm so tired, it's been a long day! Thanks bednobs. Bed for me I think!