Exchange Prep, Insurance, and Completion (The Finish Line)
You are nearing the finish line! The final stages require intense focus on legal protection and fixed deadlines. This is when your solicitor takes centre stage, and you need to be prepared for two critical, non-reversible steps.
1. Exchange of Contracts — The Point of No Return:
What it is: This is the key legal moment: the signed contracts are physically exchanged between the buyer's and seller's solicitors. The sale becomes legally binding, and a fixed completion date is set.
The Deposit: You will transfer your non-refundable deposit (usually 10% of the purchase price) to your solicitor, who holds it until completion. If you pull out after exchange, you lose this money.
Final Checks: Before exchange, ensure your solicitor has all searches back, all mortgage offers are finalised, and all survey queries have been resolved.
2. Buildings Insurance is NOW Compulsory (Do Not Miss This!):
The Risk Transfer: As soon as contracts are exchanged, the legal responsibility for the property passes to you, the buyer.
Protection is Mandatory: You must have buildings insurance in place on the day of exchange. If the house burns down after exchange but before completion, you are legally responsible for rebuilding it, even though you don't yet own the keys. Your solicitor will need proof of this policy.
3. Completion Day — Handing Over the Keys:
Fixed Date: This is the culmination of months of effort. Your solicitor transfers the remaining balance of the money to the seller's solicitor.
The Final Inspection: You are legally entitled to conduct a final walk-through inspection shortly before completion to ensure the property is in the same condition as when you last saw it (and that all agreed fixtures and fittings remain).
The Call: Your solicitor will call you once the funds have cleared and the agent has been authorised to release the keys. Only then can you collect them and celebrate!
Final Thought: Congratulations! You have successfully navigated the entire process. Welcome to home ownership.