Exchange-completion-deposits-timings?

[lisnic]

I'm confused a never done before!

What is exchange and when does it happen? Likewise completion?

When would the legal stuff be signed?

Also when would we need to release our deposit?

[*Holly*]

The contracts are prepared and signed then the solicitors formally exchange them

When you exchange contracts the sale becomes legally binding and a completion date (when you get the keys) is agreed in those documents.

When we bought our house we had to give half of the deposit at exchange although this varies from solicitor to solicitor I think. (I cant remember exactly, because the time before it was the whole deposit at exchange, but it was a lot more money this time so thats maybe something to do with it so its in your bank and not the solictors)

There is a good guide to buying on mse if you are unsure of how it works

[Rosa]

We exchanged the day before we completed, all the funds had to be in place the day before we moved.

[lisnic]

So at exchange then?we are going to try specify a completion date around dh work pattern but with exchange does he needs to be here Also as mortgage in his name only as only income?

If not just really need to know if he was away until completion but exchange happened while he was away would I need to sort the deposit stuff out?

[RealGoneKid]

It becomes legally binding at exchange so he will need to either sign the contract or give you (or solicitor) authority/POA to sign on his behalf. The deposit is due on completion and the balance on completion (solicitor will need it as cleared funds before then).

[lisnic]

I asked solicitor about poa yesterday and they said they aren't as straight forward now and they sort of said he would need to be here to sign documents like deeds but they would do it all at once

[Bop]

I think he can sign in advance - I know I signed the documents in advance and then the solicitor held them until formal exchange.

We paid the full deposit before exchange - needs to be cleared funds so a cheque would take a few days to clear...or you can do a bankers draft or electroinic transfer (but you usually have to pay for these).

You can chose when the completion and exchange dates are, but for exchange everything needs to be in place and that can delay it - all sorts seems to crop up just before exchange....last one I sold in England, exchange and completion were just a day apart - but that suited us as the house was sitting empty and we wanted it sold quickly.

Have you found one you like now?

Good luck.
Bop

[bubbasweet]

You can sign exchange documents in advance. When we sold our flat we were actually 2 weeks into a 5 week holiday in Australia when we exchanged! The solicitor sorted it.

I think you can still be on the mortgage even if you don't have any income?

[Bop]

Just noticed the mortgage bit - you can still be on it, but only his income will be taken into account when working out how much you can borrow - I presume the house will be jointly owned too?

Bop

[Jenevieve]

Yep you can sign exchange docs in advance, but if your DH is already back at work I guess that doesn't help. Unless you can post them out to him and get him to post back?

[DillyDally]

Just noticed the mortgage bit - you can still be on it, but only his income will be taken into account when working out how much you can borrow - I presume the house will be jointly owned too?

Yes, I thought that too. We own our house jointly, the mortgage is in both names, but DH is the one working, it doesn't matter.

You can sign the documents in advance - when we completed on our last house we were on holiday in San Francisco!! (we'd already moved out and moved into our new house, obviously!).