Once both parties have returned their signed paperwork, the buyer has paid the deposit (usually 10% of the purchase price) to their solicitor, and a date for completion has been agreed, contracts can be exchanged. This is done by a simple telephone call between the solicitors, where the contract is completed. Your legal adviser will then send out your signed and completed contract to the buyer’s legal adviser, and vice versa. Once contracts have been exchanged, the sale is legally binding and the date agreed for completion is fixed. From this point, neither party can withdraw from the transaction without penalty.
At this stage, your legal adviser will obtain another redemption statement calculated up to the completion date. This will confirm the exact balance that will be due on the day of completion.