Next Steps in signing a contract

J

JA1

Guest
Hi,
I am signing contracts on a house I am selling soon.

What are the steps involved in signing? what documents are signed, transfer of deeds? What is the sequence of steps, in terms of money lodged for property, Mortgage payoff to bank? Transfer of ownership etc?

Is there anything i should watch out for?

When should I expect full amount to be transfered into my account?

Thanks in advance.
 
Signing contracts and closing are two separate transactions. When you and the buyer sign contracts you are only contractually agreeing to sell/buy the property at the agreed price. Usually a substantial deposit is paid over by the buyer on signing contracts and this could be forfeit if they pull out of the deal after contracts are signed.

It is only after contracts are exchanged that you agree a closing date. This is the date when the balance of funds are paid over, the property ownership changes and keys are handed over.

Your solicitor should keep you appraised of timelines.
 
Hi,

Thanks for the reply.

I didn't receive a deposit due to closing being very soon after (two weeks) contracts were signed by buyer.

Is this usual?

Closing is due in next couple of days.


Should i expect the full amount to be paid over on the same day at least to solicitor client account?

Thanks again.
 
I'm in a similar position - see posting called 'contract paid no deposit' (don't know how to insert hyperlink..)

Anyway, it would be usual to have contracts signed by both parties and deposit received by sellers solicitor. In the event of quick closing you will be required to sign transfer of deeds but only do so when your solicitor is in receipt of the final loan cheque (which pays for full purchase). The solicitor will request a closing balance from your mortgage provider and transfer funds to clear the balance. He/she will then pay you balance, minus their own fees of course.
 
JA1 said:
Hi,

Thanks for the reply.

I didn't receive a deposit due to closing being very soon after (two weeks) contracts were signed by buyer.

Is this usual?

Closing is due in next couple of days.


Should i expect the full amount to be paid over on the same day at least to solicitor client account?

Thanks again.
Click to expand...


Was any deposit paid ? i.e either to your solicitor or estate agent? If not then that is unusual and in my view very unwise. As a solicitor i would recommend in the strongest possible terms to my vendor client never to sign contracts if deposit not paid. If my client is the purchaser I might be singing a different tune!

On closing i.e the day the purchaser gets the keys to move in your solicitor must get the balance due in full (in this case if no deposit paid this means the entire purchase price) otherwise the sale does not close.

Your solicitor must then pay off your mortgage in full with the sale proceeds before he/she can give you the balance. Usually the solicitor will deduct the(agreed) fees at that stage as well as all outlays.

Your solicitor may well have you sign the deed transferring ownership to the purchaser a few days before the closing for simple reasons of logistics (e.g it may not be convenient for you to attend at the closing itself)..do not worry this document will only be handed over to the other side at the closing when your solicitor gets the balance of the purchase price.. You really should have your solicitor explain all of this to you if you are worried.

Best of Luck
 
You must log in or register to reply here.
Back
Top