When the draft contract is agreed, your house hunt is far from over. Find out why.
The draft contract is the first contract your solicitor will draw up for your property transaction.
The reason it’s a ‘draft’ is because the sale is not legally binding until the exchange of contracts, which happens during the final stages of the process.
Your draft contract is a short document written by the seller’s solicitor and covers basic information about the prospective sale, such as the price, deposit, and any relevant details from the title deeds. It’s different from the final contract because there are many more hurdles which could shape the eventual agreement. For example:
Once the draft contract has been negotiated between the solicitors, you’ll be sent a copy to check.
When the final terms have been agreed and any issues have been resolved, you’re ready to exchange. At this point, the transaction becomes legally binding, and neither party can pull out without facing potential legal action and significant costs.
In an ideal world, it should take around 9 weeks from the draft contract stage until the day you exchange. But as we’ve covered, it’s not always that simple.
A lot can happen before completion day, and for a taste of what can go wrong, read our blog on why house sales fall through.
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