Exchanging on a property Purchase

[Maylix]

Hi
Can anyone explain what is actually involved in an 'exchange' on a property purchase? I'm after what the 2 sets of solicitors actually do and how long it takes. I'm on the buying side, of a modest bog-standard house, with no chain, and no mortgage, Survey and searches have been done (nothing of note), our solicitors have confirmed that they have the signed contract forms, land transfer doc (TR1), sdlt form, and deposit we've sent them, so nothing else needed from our side, as we understand it.
We know the sellers are keen to exchange, we have an agreed completion date, yet our solicitors seem to be dragging their feet, saying they are very busy. Hence my question about what actually do the solicitors need to do, and how long does it take? Is it literally buyer's solicitor sends a bunch of documents and deposit, and sellers solicitors send a bunch of documents? Or is it more complicated? Any help much appreciated.

TIA
May Lix

[Clitheroekid]

Exchanging contracts is the point at which the contract becomes binding on both parties. It therefore can't happen until the buyer has all his ducks in a row - guaranteed mortgage offer, clear searches etc - and the seller is ready to vacate.

The second point - and one that often causes delay - is that at exchange of contracts the completion date is fixed. It's a crucially important term of the contract, and there are severe penalties if it's not complied with. Consequently, exchange is entirely dependent on a completion date being agreed between the parties.

When everything is agreed one solicitor phones the other and there's an agreed formula that everyone uses - https://www.lawsociety.org.uk/en/topics ... -telephone

It's nearly always formula B that's used, so we would agree the completion date and any other variables, such as the amount of deposit being paid and whether it would actually be paid or `held to order' (i.e. retained in the buyer's solicitor's account for convenience). We would then say words to the effect that "I Mr Seekay and you Mr Maylix have a formula B exchange at 2:25 on 19 May 2021", and those details would then be written on both copies of the contract.

Traditionally, the hard copy of the contract would then be posted to the other party's solicitor - hence exchange of contracts.

[Maylix]

Exchanging contracts is the point at which the contract becomes binding on both parties. It therefore can't happen until the buyer has all his ducks in a row - guaranteed mortgage offer, clear searches etc - and the seller is ready to vacate.

The second point - and one that often causes delay - is that at exchange of contracts the completion date is fixed. It's a crucially important term of the contract, and there are severe penalties if it's not complied with. Consequently, exchange is entirely dependent on a completion date being agreed between the parties.

When everything is agreed one solicitor phones the other and there's an agreed formula that everyone uses - https://www.lawsociety.org.uk/en/topics ... -telephone

It's nearly always formula B that's used, so we would agree the completion date and any other variables, such as the amount of deposit being paid and whether it would actually be paid or `held to order' (i.e. retained in the buyer's solicitor's account for convenience). We would then say words to the effect that "I Mr Seekay and you Mr Maylix have a formula B exchange at 2:25 on 19 May 2021", and those details would then be written on both copies of the contract.

Traditionally, the hard copy of the contract would then be posted to the other party's solicitor - hence exchange of contracts.

Thanks CK, exactly the stuff I needed to know. Muchos Gracias!