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1. Before Exchange of Contracts

Prior to exchange:

• The sale is not legally binding.
• Either party can withdraw from the transaction for any reason.
• No compensation is normally payable if someone pulls out.

This period covers:

• Offer accepted
• Mortgage application
• Surveys
• Conveyancing enquiries
• Draft contract negotiations

This stage is often described as “subject to contract.”

2. At Exchange of Contracts

At exchange:

• Both parties sign identical contracts.
• Solicitors formally exchange them.
• The completion date becomes fixed.
• The buyer usually pays a 10% deposit.

3. Completion

Completion normally takes place 1–4 weeks after exchange, although it can be the same day.

On completion:

• Remaining funds are transferred.
• Legal title transfers.
• Keys are released to the buyer.

When buying a house in England and Wales, you normally sign the purchase contract shortly before the exchange of contracts, but signing it does not make the purchase legally binding on its own.

Typical Timeline

1. Offer Accepted

• The property is agreed “subject to contract.”
• Solicitors begin conveyancing.

2. Conveyancing Stage

• Searches are carried out.
• Enquiries are raised with the seller’s solicitor.
• Mortgage offer is issued.
• Survey is completed.

3. Signing the Contract

• Your solicitor will send you the contract for signature once everything is ready.
• You usually sign it a few days before exchange, sometimes earlier.
• The signed contract is held by your solicitor until exchange.

4. Exchange of Contracts (Legally Binding Point)

• Your solicitor and the seller’s solicitor formally exchange the signed contracts.
• You pay the deposit (usually 10%).
• The completion date becomes fixed.

5. Completion

Important Point

Even if you have already signed the contract, you can still withdraw until exchange of contracts because the agreement is not legally binding until the solicitors exchange the contracts.

Practical Example

• Monday: You sign the contract and return it to your solicitor.
• Wednesday: Both solicitors exchange contracts.
• Friday (or later date): Completion takes place.

So signing happens first, but exchange is the moment the deal becomes legally binding

When buying a property in England and Wales, searches are checks carried out by your conveyancer with public authorities and specialist databases to uncover issues that may affect the property, its value, or your ability to use it.

They are usually ordered early in the conveyancing process after the offer is accepted and before exchange of contracts.

The Main Property Searches

1. Local Authority Search (LLC1 & CON29)

This is the most important search and is obtained from the local council.

It reveals things such as:

• Planning permissions and building regulations
• Enforcement notices
• Conservation areas
• Tree preservation orders
• Road schemes or compulsory purchase orders
• Whether the road is adopted or private
• Restrictions affecting the property

This ensures there are no legal restrictions or council issues affecting the property.

2. Drainage & Water Search

Obtained from the local water authority (e.g. United Utilities in Lancashire).

It confirms:

• Whether the property is connected to mains water and sewerage
• Location of public drains and sewers
• If sewers run within the property boundaries
• Who is responsible for maintaining drainage

This is important if you want to extend the property, as building over a sewer may require permission.

3. Environmental Search

This checks historic environmental data to identify risks such as:

• Contaminated land
• Flood risk
• Landfill sites
• Industrial history
• Ground stability
• Radon gas risk

Mortgage lenders usually require this search.

Other Searches Sometimes Ordered

Depending on the property and location, additional searches may include:

• Coal Mining Search
• Common in Lancashire and much of the North West. It reveals:
• Past mining activity
• Risk of subsidence
• Mine shafts nearby

Flood Risk Search

Provides more detailed flood data than the environmental search.

Chancel Repair Liability Search

Checks if the property could be liable to contribute to repairs of a medieval parish church (rare but still possible).

HS2 / Infrastructure Searches

If major transport projects may affect the area.

Who Pays for Searches?

The buyer normally pays for them as part of their conveyancing costs.

Typical cost in the UK:

• £250 – £400 combined (varies by area and solicitor).

Why Searches Are Important

Searches protect the buyer from unknowingly purchasing a property with hidden issues, for example:

• A planned road expansion through the garden
• Property built on contaminated land
• Flood risk
• An unadopted road meaning you must pay for maintenance
• A mine shaft nearby

In England and Wales, the point at which you must arrange buildings insurance depends on when the risk passes from the seller to the buyer, which is normally at exchange of contracts.

Standard Position

Under the Standard Conditions of Sale (5th Edition) used in most residential conveyancing transactions:

The buyer becomes responsible for the property from exchange of contracts.

This means the buyer should have buildings insurance in place from the moment contracts are exchanged.

In England and Wales, the mortgage lender normally releases the funds on the day of completion, but they send them to your solicitor in advance of completion.

Typical Timeline:

1. Before Exchange of Contracts

Your solicitor must:

• Receive your formal mortgage offer
• Report to the lender confirming the property is acceptable security
• Request the mortgage funds from the lender

Most lenders require 5 working days’ notice to release the funds.

2. Requesting the Mortgage Funds

Your solicitor usually sends the Certificate of Title to the lender and requests the funds around 5 working days before completion.

This confirms to the lender that:

• All legal checks are complete
• The property is good security for the loan
• The transaction is ready to complete

3. Day Before or Day of Completion

The lender transfers the money to your solicitor.

Typically:

• Funds arrive the working day before completion, or
• Early morning on completion day via bank transfer.

4. Completion Day

Your solicitor combines:

• Your deposit and balance
• The mortgage funds

They then send the full purchase price to the seller’s solicitor.

Once received:

• Completion occurs
• The estate agent releases the keys.