Exchanging contracts is the stage of the property transaction process before final settlement – almost there!
The first important document exchange is a Contract for Sale. Neither you nor the seller is legally bound to go ahead with the sale until a written contract is exchanged.
This contract usually details the:
- Property address
- Names of the parties (you and the seller)
- Selling price
- Terms and conditions
- Special inclusions in the sale like a dishwasher or blinds
- Date of settlement (the day you become the owner)
Exchanging contracts is fairly self-explanatory — copies of the contract are signed by both you and the seller (in identical terms) and the contracts are then literally exchanged. Note that at the time of exchange, this is when the deposit usually must be paid (if not already done).