What Time Of Day Does Exchange Of Contracts Happen?

The process of buying or selling a property involves various steps, with the exchange of contracts being one of the most important. The exchange of contracts marks the point when the transaction becomes legally binding, and both parties are obligated to complete the sale. One common question that arises during this process is, "What time of day does exchange of contracts happen?"

In this insight, we will cover everything you need to know about the exchange of contracts, including the factors that could affect the timing of this crucial step.

Key Takeaways

• Exchange of contracts happens any time of day, any day of the week. The actual time depends on factors such as the availability and readiness of the solicitors and parties involved. Most common exchange of contracts time is during business hours, when solicitors are most likely to be available.
• It marks the point when the transaction becomes legally binding. It involves signing and exchanging contracts, setting a completion date, and paying a deposit.
• Factors like property chain length, mortgage lender availability, and solicitor availability can affect the timing.
• Adequate preparation is crucial for a smooth exchange of contracts.

What Time of Day Does Exchange of Contracts Happen?

Exchange of contracts happens any time of day, any day of the week. The actual time depends on factors such as the availability and readiness of the solicitors and parties involved. Most common exchange of contracts time is during business hours, when solicitors are most likely to be available.

Furthermore, some sources suggest that the exchange of contracts often takes place around midday, although this is not a strict rule. Ultimately, the exact timing will depend on the specific circumstances of each transaction.

Before we review further what time of day does exchange of contracts happen, it's important to understand more about the exchange of contracts process.

The Exchange of Contracts Process

To understand the specifics of when the exchange of contracts happens, it's essential to understand the overall process. The exchange of contracts typically occurs after the following milestones have been reached:

•     Both the buyer and seller have agreed on the property's price and any included fixtures and fittings.
•     The buyer has obtained a mortgage offer and completed any necessary surveys.
•     The solicitors or conveyancers for both parties have conducted the required searches and checked all relevant documentation.

Once these steps have been completed, the exchange of contracts can take place. This process involves the following:

• The solicitors for both the buyer and seller have a signed contract in their possession.
• Both parties agree on a completion date for the sale.
• The solicitors for the buyer and seller contact each other to confirm that they have the necessary legal documents to complete the transaction.
• The exchange of contracts takes place, typically through a recorded telephone call, during which the legal documents are read out to ensure they are identical.

What happens on the day you exchange contracts?

On the day of exchanging contracts, both the buyer and seller sign and exchange the legally binding contracts for the property purchase. The buyer typically pays a deposit to their solicitor, usually 10% of the property's value, and the completion date is set. Your solicitor will tell you when you exchange contracts during business hours.  

Does Exchange of Contracts Take All Day?

No, exchange of contracts can happen in the early morning, or in the late evening. The act of exchange of contracts is a quick process. The agreement with all parties in the chain to exchange contracts is what takes time throughout the day.

Factors That Could Affect the Timing of the Exchange

Several factors could influence the timing of the exchange of contracts. Some of these include:

Property Chain Length

The length of the property chain can significantly impact the timing of the exchange of contracts. A longer chain may cause delays as the parties involved wait for everyone in the chain to be ready to proceed. Conversely, if there is no property chain or a short one, the exchange of contracts may happen more quickly.

Mortgage Lender Availability

The availability of the buyer's mortgage lender can also affect the timing of the exchange. If there are any issues with the mortgage application, it could cause delays in the process.

Solicitor and Conveyancer Availability

As mentioned earlier, the availability of the solicitors and conveyancers for both parties plays a crucial role in determining when the exchange of contracts occurs. Both parties must be available to participate in the recorded phone call, and any scheduling conflicts could cause delays.

External Factors

Various external factors could also impact the timing of the exchange of contracts, such as waiting for the results of searches or dealing with unexpected issues that arise during the process. These factors are often beyond the control of the parties involved but can still cause delays.

Preparing for the Exchange of Contracts

Given the importance of the exchange of contracts, it's crucial for both the buyer and the seller to adequately prepare for this step. Here are some essential tasks that should be completed before the exchange of contracts:

• Agree on the property's price and any included fixtures and fittings.
• Obtain a mortgage offer and complete any necessary surveys.
• Arrange for the funds for the deposit and ensure that it has been paid.
• Have the solicitor or conveyancer check the necessary searches and documentation.
• Agree on a completion date for the sale.
• Read and understand the contracts.
• Provide the solicitor or conveyancer with the deposit or proof of funds.

By completing these tasks, both parties can help ensure a smooth and timely exchange of contracts.

What Happens After the Exchange of Contracts?

After the exchange of contracts, the next significant milestone in the property transaction process is the completion date. This is the day when the buyer takes legal possession of the property, and the seller hands over the keys. The completion date is typically agreed upon during the exchange of contracts and usually occurs between 7 and 28 days after the exchange.

Before the completion date, both parties should:

• Book a removal company or arrange for assistance in moving.
• Notify the freeholder of the property (if applicable) of the new ownership.
• Confirm with the solicitor that the transfer of ownership has been registered with the Land Registry. 

Final Thoughts: What Time of Day Does Exchange of Contracts Happen?

While it's difficult to pinpoint an exact time of day for the exchange of contracts, it's essential to understand the overall process and the factors that could affect its timing. By adequately preparing for this crucial step and working closely with your solicitor or conveyancer, you can help ensure a smooth and timely exchange of contracts, setting the stage for a successful property transaction.