When it comes to buying a property, the process can be quite complicated. One of the most significant milestones in the process is the exchange of contracts, which is when both the buyer and seller become legally bound to sell and purchase the property, respectively.
Once the contracts have been exchanged, the buyer is required to pay a deposit, which is usually 10% of the property`s value. But, what happens between the exchange of contracts and completion, and is there a time limit for completion?
In short, there isn`t a set time limit for completion once contracts have been exchanged. However, most property transactions will aim to complete within 4-6 weeks of the exchange of contracts. This is because both parties will have made arrangements for the completion date and it typically takes this amount of time for the buyer to secure the funds needed for the purchase.
There are certain circumstances where the completion date may be delayed. For example, the seller may be unable to vacate the property on the agreed-upon completion date, or the buyer may experience problems obtaining the necessary funding. In such instances, a mutually agreed-upon new completion date will need to be set.
It`s essential to remember that the completion date is not set in stone until contracts have been exchanged. Before this point, either party can pull out of the transaction without any repercussions. Once contracts have been exchanged, both parties are legally bound to complete the transaction.
If one party fails to complete on the agreed-upon completion date, the other party may have the right to withdraw from the transaction and retain the deposit. Alternatively, they may be able to claim compensation from the party that failed to complete.
So, while there`s no set time limit between the exchange of contracts and completion, it`s crucial that both parties are clear on the expected completion date. It`s equally important that both parties do everything in their power to make sure they can meet this deadline and avoid any potential issues that could delay completion.
Overall, it`s vital to remember that completing a property transaction can be a complicated process. While there isn`t a specific time limit for completion, it`s essential to be aware of the expected timeline and any potential complications that could arise. With clear communication and careful planning, both parties can successfully complete the transaction and move onto the next chapter of their lives.