There Are Several Reasons Why The Process Of Exchanging Contracts Could Be Held Up
For those buying property in uk, the process can be a stressful one, especially if they’re worried about their completion being delayed. There are several reasons why the process of exchanging contracts could be held up, but the good news is that many of those are avoidable. Our team of experts at CapEx Properties have some advice to help prevent any delays from arising during your process.
What Can Delay Exchanging Contracts?
The exchange of contracts is a key step in all property transactions since it’s the point at which everything becomes legally binding. It can be an arduous process to get there, though. All transactions are different, so there are lots of different variables that come into play, even if your purchase seems like a simple one. Here are some common reasons for delayed completions.
1. Searches, Queries, And Communication
If one of the search results hasn’t yet arrived, the process of contract exchange will be halted until it turns up. Unanswered queries are another common cause of delays. Both the seller and buyer’s solicitors ask questions of the other party, and the exchange of contracts can only proceed after they receive an answer that is satisfactory. If one of the solicitors is slow or unresponsive, delays can occur in the contract exchange process.
Any of the parties involved in the property transaction could cause a hold-up if they’re slow in responding to information requests or documentation. But you can speed up the process as much as possible at your end by answering any questions promptly, reading, signing, and returning paperwork quickly, and keeping in touch regularly with your solicitor and estate agent.
2. Issues With The Chain
Most property transactions involve a chain of other properties, and if there is a problem anywhere along its various links, every sale and purchase will be held up. For example, if a buyer’s mortgage lender finds something dishonest or untoward about the applicant or property, they can stop the process by withdrawing an offer.
Unfortunately, in some cases, the seller may change their minds, bringing a halt to the process or the surveyor for the bank providing the mortgage might not find the level of value security required for the level of finance needed by the buyer. Using the services of a reliable London property agent like CapEx Properties when you buy property in UK is the best way to mitigate such risks, as we are aware of the potential pitfalls and can facilitate the communication between the parties to find out what their issue is and to offer solutions that will get the chain moving again.
3. Market Conditions
Sometimes, conditions in the property market will affect the length of time you need to wait until the exchange of contracts. If the market is overwhelmed with a lot of sales and purchases, searches will take longer to be returned, and estate agents and solicitors may experience backlogs. Although this only happens rarely, it can be a frustrating cause of delays.
4. Gazundering And Gazumping
Although the practices of gazundering and gazumping are frowned upon, they still exist in the property market. Until contracts are exchanged, these practices are entirely legal, albeit unethical.
How To Minimise Completion Delays
Although there is little that you can do to prevent delays further down the property chain, choosing the right team of professionals including your property buying agency, is the best way to avoid issues at your end. Our team of passionate negotiators at CapEx Properties are highly experienced and always work with your best interests at the fore making us a solid choice to handle your purchase.
Get in touch today on +442039898010 to find out more.
