Waiting for the contracts to exchange is a stressful time for home buyers. Complexities beyond your control, such as survey issues and mortgage delays, are a couple of examples of factors that can delay exchanging contracts.
Looking at purchasing a property? You've come to the right place. This article guides you through the various reasons why the exchange of contracts can be delayed, and what you can do to make the process as smooth as possible on your end.
The conveyancing process can take months to get from getting an offer accepted to the point of exchange. The answer to why there is a delay in exchanging contracts can vary, but there is always a reason and a solution.
We cover what can hold up exchange of contracts and what you can do, including:
Waiting on replies to enquiries.
Seller is extending the lease.
Delays with a mortgage offer.
Problem with your survey.
Issues within the conveyancing searches.
Seller delaying exchange of contracts.
Solicitor drafting the report on title.
Original signed documents.
What can hold up exchange of contracts?
1
Waiting on replies to enquiries
This is the most common hold-up for the exchange of contracts. A legal enquiry is a question the buyer's solicitor has sent to the seller that hasn't been answered. It can take weeks for a technical enquiry to be answered, especially if the answer comes from a third party. Here are some of the most common legal enquiries and how to answer them >>.
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To answer the question, the seller's solicitor must obtain information from their client, local authority, Land Registry, freeholder/managing agent and even the solicitor who acted for the seller when they bought the property. Where information can't be found, the buyer needs to decide whether they progress without it, or where they have a mortgage, obtain mortgage lender consent to not having the answer and/or obtain indemnity insurance to protect the lender's mortgage.
2
Seller is extending the lease
A seller with a short lease can add months onto when an exchange can take place. If you have an absent freeholder, this can be delayed further because you'll need to obtain a vesting order.
To speed up the process, determine if the seller has agreed on a premium with the freeholder and if it is a formal or informal lease extension. Read more - How do you buy a property with a short lease?
3
Delays with a mortgage offer
A buyer's mortgage offer can be delayed for many reasons, but primarily if the bank undervalued the property or if the buyer has affordability issues. If the buyer has used a mortgage broker, they can guide the buyer on how best to overcome the issue.
OR: stress, missed deadlines, legal disasters, building defects, and possibly the collapse of the whole transaction.
(Costing you a small fortune, a head full of grey hairs, and driving you to threaten the life of your solicitor, lender, co-owners, family, partner, or some combination of all five).
£9.99
4
Problem with your survey
An issue in the buyer's Home Survey can hold up exchange of contracts until further investigations or repairs are undertaken. Here is a list of issues and how best to handle them:
Some of the above are potential deal breakers until they get fixed, so holding off exchange is in the buyer's best interest.
5
Issues within the conveyancing searches
The conveyancing searches can cause delays, first with the local council providing the results and with the results found within them. Here are some issues that can delay exchanging contracts:
Most issues found within the searches can be addressed, but they will delay the exchange.
How long are local searches taking at the moment?
6
Seller delaying exchange of contracts
A seller who was going to break a chain can delay an exchange if, during the process, they find a property to buy. This can add on weeks before the onward purchase is in a position to exchange contracts. Read more - What to do if you have a property chain
7
Solicitor drafting the Report on Title
Once all the legal enquiries are satisfied, the buyer's solicitor drafts a Report on the Title for the buyer to inform them of the property they are buying. This includes all of the documents for signing. The title report is a large document, so it can take a few days to draft, as solicitors draft them in order of priority.
The delay at this part can be frustrating for the buyer, as the report is all they need before they can get to the exchange of contracts.
8
Original signed documents
The solicitor needs signed original documents before exchanging contracts. You can hold up the exchange of contracts when you return documents to your solicitor by first or second-class post. You should return them special delivery to guarantee the documents arrive the next working day.
What is the complete Conveyancing Process for the buyer?
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Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
