Once Contracts Are Signed How Long to Exchange
Once contracts are signed, the process of exchanging can take several weeks depending on various factors. The exchange of contracts is a crucial step in the home buying process in many countries, as it legally binds both the buyer and the seller to complete the transaction. In this article, we will explore the factors that can affect the timeline for exchanging contracts.
The length of the chain refers to the number of transactions that need to take place to complete the sale. For instance, if the buyer is purchasing a property from someone who is also buying a property, the chain is two links long. The longer the chain, the more complex the process can be, and this can affect the timeline of exchanging contracts. This is because each sale within the chain must be completed for the final purchase to go ahead.
Searches and Surveys
Before exchanging contracts, searches and surveys must be conducted to ensure that there are no hidden issues that could affect the sale, such as planning permission or boundary disputes. These searches and surveys can take time to complete, and any issues that arise must be resolved before exchanging contracts.
If the buyer is obtaining a mortgage to finance the purchase, the lender will need to approve the mortgage application before exchanging contracts. This can take several weeks and may require additional documentation or steps.
The seller`s circumstances can also affect the timeline of exchanging contracts. If the seller is buying a new property or has other issues to resolve, the exchange may be delayed until those issues are resolved.
Delays and Re-negotiations
Even after contracts are signed, delays can occur, and negotiations may be required before exchanging contracts. This can include issues such as the condition of the property or unforeseen title defects.
The timeline for exchanging contracts can vary depending on the length of the chain, searches and surveys, mortgage approval, seller`s circumstances, and other factors. It is essential to work with experienced professionals in the home buying process to ensure that the process runs smoothly and efficiently. With careful planning and preparation, the exchange of contracts can be completed within a reasonable timeline, allowing both the buyer and seller to move forward with their plans.