When you buy a new build house, there are a lot of steps involved in the process. One of the most critical steps is exchanging contracts. But when does this process happen?

To start off, let`s define what “exchange of contracts” means. When you exchange contracts, it means that you and the developer have agreed on the terms and conditions of the sale and have signed a legally binding contract. At this point, you will pay a deposit, and the developer will give you a completion date.

The exchange of contracts is the point of no return. Once you have exchanged contracts, you are legally obliged to complete the purchase, and so is the developer to build your new home. Therefore, it`s essential to understand when this process occurs to ensure that everything goes smoothly.

So, when do you exchange contracts on a new build house?

Typically, the exchange of contracts happens when:

1. You have received and agreed to the terms of the contract from the developer.

2. You have obtained a mortgage offer.

3. The development`s construction has either finished, or the developer has a completion date.

Once these three conditions are met, you and the developer`s representatives will exchange contracts. You will need to pay a deposit, which is usually around 10% of the purchase price, and sign the contract to confirm the purchase. Once the developer has received your deposit and signed contract, they will also sign the document, and the exchange is complete.

It`s worth noting that the exchange of contracts happens on a specific date. This date is agreed upon by both you and the developer, usually a few weeks before the completion date. The process of exchanging contracts can take several days to a few weeks, depending on how quickly you and the developer can agree on the terms of the contract and finalize any outstanding issues.

In conclusion, exchanging contracts on a new build house is a crucial step in the buying process. Knowing when this process happens is essential to ensure a smooth and successful purchase. Remember, once you have exchanged contracts, you`re legally obliged to complete the purchase, so make sure you`re happy with all the terms before doing so.