When selling a home, confusion about contracts can add to the stress.
Solicitors handle the legal process, but you may still have many questions.
One of those questions may be: Who signs the contract first? Is the first person who signs putting themselves at a disadvantage?
It’s a common question which we’ll answer in this blog.
Why do I sign a contract after selling a house?
Once you agree to the sale price of your home, you’ll need to sign the contracts with all the final details.
Here, you’ll trust your solicitor to ensure everything is watertight and as agreed.
Once you have exchanged the contracts, then the sale becomes legally binding.
This doesn’t always mean it’s irreversible, but there will now be severe financial penalties for breaking the agreement. This is almost the point of no return.
If the buyer backs out of buying your property after signing the contract, they’ll lose their deposit. On the other hand, if the seller were to back out, they’d most likely become liable for all the costs incurred by the buyer.
When selling a property, the only other document you need to sign is the Transfer Deed.
The Transfer Deed is a legal document that transfers the ownership of the property from you to the new buyer.
Your solicitor may ask you to sign this before or after the exchange of the contracts, but it needs to be ready for the day of completion.
What should you receive as proof of sale of property?
You do not need anything specifically as proof of the property’s sale, although you can ask your solicitor for the relevant sale documents regarding the money transfer.
As mentioned above, the sale becomes legally binding once contracts are exchanged. The buyer’s solicitor will send the money to your solicitor for completion. Once this money has been received, the sale is complete.
Your solicitor will complete the relevant legal documents, and you can request them if you wish. The buyer’s solicitor usually completes updating the Land Registry, but you can obtain your copy for a small fee.
There is the Property Transfer Deed that you would have had to sign, and you can also request a copy of this. The keys will only be handed to the buyer once the money transfer has been completed.
When selling a house who signs the contract first?
When selling a property, it doesn’t matter who signs the contract first.
The agreement isn’t legally binding when you sign it—it only becomes legally binding once the contracts have been exchanged.
For example, let’s say you have already signed the contract, but the buyer still needs to.
If they try to change the terms or your lawyer is unhappy about a part of the arrangement, you can still withdraw from the sale.
Once you have signed the paperwork, your solicitor will discuss the final details with the buyer’s solicitor. If they are both happy, the contracts will be exchanged.
Things to consider before signing a house sale contract
For many people, selling a home is the most critical transaction ever. It’s sensible to take your time and be patient. Here are some things you need to consider:
Are you ready?
Is now the right time to complete the sale? Do you have another home to move into or need more time to sort out your affairs? Don’t be afraid to delay the process if you’re feeling rushed.
Check the details
You’ll be working with a highly qualified solicitor, but it’s always a good idea to check over the contract yourself. A solicitor should be happy to discuss any terms you don’t understand.
Ask questions
Be bold, and don’t ask as many questions as needed. Selling a home is a huge undertaking, and you need to be comfortable with the process. If you have doubts, speak up to give yourself peace of mind.
Be sure you want to sell
Once the contracts have been exchanged, it’s always possible to back out. If you don’t feel comfortable signing the agreement, then don’t. Yes, it may be inconvenient for others, but you must put yourself first.
It can feel awkward to delay the process, request documents, or ask many questions, but you shouldn’t be shy about it.
Selling a home is a massive milestone in your life; sometimes, you need a little reassurance.
Sell your property with We Buy Any Home
We Buy Any Home are chain-free cash house buyers who can purchase your property up-front and quickly if you want to sell your house for cash.
Using our funds, we will purchase your property at a set price by your chosen date and fully manage it from beginning to end.
Fill in our enquiry form below if you want a cash offer for your house.
