If you’re buying or selling a property for the first time, terms like “exchange,” “completion,” and “enquiries” can feel like a foreign language. Here, we answer the questions our clients ask us most often.
What are the main stages of a property transaction?
Offer accepted – Your estate agent confirms the sale “subject to contract.”
Instruction – Solicitors are instructed by both parties and draft/receive the contract pack.
Searches – The buyer’s solicitor carries out local authority, water, environmental, and other relevant searches.
Enquiries – The buyer’s solicitor raises questions on the searches, title, and property information.
Mortgage offer – Your lender issues a formal mortgage offer.
Exchange of contracts – Both parties sign and formally enter in the sale contract, and the transaction becomes legally binding.
Completion – The money moves, keys are released, and you become the legal owner.
Why are “enquiries” raised and why does it feel like it’s taking forever?
Enquiries are questions your solicitor asks the seller’s solicitor to clarify anything unclear or concerning in the title information, searches, or property information form. This might include boundary queries, planning permission, or guarantees for past building work. It can feel slow, but this stage exists to protect you as it’s far better to uncover an issue now than after you own the property. But don’t worry as most uncovered issues can be resolved with the help of your experienced solicitor.
What does “exchange of contracts” actually mean?
Exchange is the point at which the transaction becomes legally binding. Before this, either party can pull out without penalty. Once contracts are exchanged:
A completion date is fixed.
The buyer will pay deposit (usually 10%).
Neither party can withdraw without financial consequences including the buyer losing their deposit and costs being claimed from the default party.
What’s the difference between exchange and completion?
Think of it this way: exchange is the commitment, completion is the handover.
- Exchange = contracts are formally entered into by the respective solicitors. The deal is now legally binding, the completion date is fixed, and the deposit is paid.
- Completion = the sale actually happens. The remaining funds are transferred, the seller’s solicitor confirms receipt, and the keys are released.
The gap between exchange and completion can vary depending on the timescales of both parties.
Can exchange and completion happen on the same day?
Yes, this does happen, most commonly when a completion date is agreed at short notice. However, it’s riskier, as until contracts are exchanged there is no guarantee that completion will take place and so its makes practical arrangements such as booking removals tricky.
What happens if I need to pull out after exchange?
This is why exchange is such a critical moment. Once contracts are exchanged, pulling out means breaching the contract. You could lose your deposit and potentially face a claim for costs incurred by the other party. This is why your solicitor will only recommend exchanging once you’re genuinely ready with mortgage offer in hand, searches clear, and moving arrangements sorted.
What is a Transfer Deed?
This is the legal document that you will sign to formally transfer the ownership of the property. This document is required to be signed by you in the presence of a witness and on completion will be sent to Land Registry to update the title to the property. The transfer deed is required to be signed and held by your solicitor in order for completion to take place.
What happens on completion day?
This is the day that you have been waiting for, moving day. On completion day;
- The Seller’s solicitor confirms that funds have been recieved.
- Once received, the seller’s solicitor confirms completion.
- The estate agent releases the keys.
- The buyer’s solicitor deals with Stamp Duty Land Tax (SDLT) and updates the title with the Land Registry.
How long does the whole process take?
On average, 8–12 weeks from offer to completion, though this varies significantly depending on chains, mortgage lenders, and how quickly searches and enquiries are resolved.
Got a question we haven’t covered?
Every transaction is different, and there’s no substitute for advice tailored to your specific sale or purchase. If you’re buying, selling, or simply want to understand where you stand in the process, get in touch with our team today.