Exchange of Contracts

What is Exchange of Contracts?

• When the client agrees a Sale with the Buyer

• When the transaction becomes legally binding and no one can pull out

• When the seller moves house and hands over the keys

• When all legal work has been completed on the file

On a Freehold property when should the property be insured by the buyer?

• The day a Sale is agreed

• On Completion

• On Exchange of Contracts

• The day before completion

On Exchange of Contracts, what happens to our clients original signed Contract?

• We place this on our Conveyancing file

• We post the Contract back to the client

• We post the original Contract and Fixture and Fittings Form to the buyers/sellers Solicitors and keep a copy for our file

• The Contract can now be destroyed

How long is an OS1 Priority search valid for?

• 1 week

• 3 weeks

• 1 day

• 6 weeks

You have carried out a Bankruptcy search and a K18 Result has been revealed. What should you do?

• Ignore this as long as you have the result

• Inform the sellers Solicitors

• Carry out an Insolvency check on the buyer to determine if the entry relates to them

• Ask the buyer to certify the result confirming the entry does not relate to them

You receive an OS1 Priority search with a new edition to the register attached. What should you do?

• Check the new Official Copies against the old Official Copies to determine what has changed

• If a new Charge has been added we would require updated Replies to Requisitions from the sellers Solicitors

• As long as the seller is still the registered owner ignore this

• Inform your Team Manager

How much do OS1 Priority Searches cost?

• £1

• £2

• £3

• £4

How much do K16 Bankruptcy Searches cost?

• £1 per person

• £2 per person

• £3 per person

• £3 per person

You are about to take the clients Authority to Exchange. Before you go any further, what must you first check with the client?

• Ask the client a security question such as their Date of Birth

• Ask the client if they have had a nice day

• Make sure the client is aware the sale/purchase becomes legally binding on Exchange

• Does the client rate the service you have provided

What Formula of Exchange should be used on Chain Transactions?

• A

• B

• C