The advantage of exchanging contracts a few weeks before the set completion date is that, if one of the parties does not maintain its obligations under the contractual terms, each party can sue the other party either for „specified performance“ (in other words, ask the courts to force the seller to sell the house to you in accordance with the contractual terms) or alternatively, for damage. At this point, an agreement to buy or sell a property becomes legally binding: once the buyer and seller have exchanged contracts, they cannot withdraw from the business. The flexible schedule is not exclusively intended for the use or benefit of the owner or contractor, but is a common resource, which is coming to an end, available to both parties if necessary, in order to meet the planned milestones and the date of conclusion of the contract. As a seller, the buyer`s deposits give you the certainty that they intend to proceed with the completion and, if not, you have the right to keep the full deposit as compensation. Legal problems often arise during construction dates. There are countless legal opportunities for lawyers dealing with construction-related issues. As a result, anyone involved in construction should exercise due diligence when thinking about how to protect themselves and avoid legal problems, legal fees and other possible expenses. As a buyer, your role is simple on closing day – you are waiting for a call from your developer that confirms that your mortgage and surety have been transferred to the seller and that completion has taken place. In this guide, we explain what everyone should do before the exchange, the typical schedules and processes and what is actually involved in the exchange and conclusion. Completion dates are often set two weeks after the exchange, but this is only a directive.
If no one in the chain is in a hurry to move, you can ask for more time – and sometimes people are ready in less than two weeks. The good news is that if you exchange contracts, the lawyers agree on a completion date. Since law firms can be sued if they don`t meet this date, they have a strong incentive to meet the deadline, and so you can be sure that you will definitively close the day everyone agrees. Once the buyer`s representative is satisfied that all legal intricacies have been resolved and has a confirmed mortgage offer and that for the other funds needed to pay the deposit, attorney`s fees and stamp duty, etc., a date must be agreed to conclude the sale. In other words, the seller will move, the buyer pays on all the remaining funds for the purchase and collects the keys from the seller. The date of conclusion of the contract must not be changed by the presentation of a calendar indicating an early closing date, unless this date has been expressly approved by the modification order. According to TwentyCi, nearly half of all real estate construction takes place on a Friday in 2018. This gives everyone time to organize for completion: when exchanging contracts, the „completion date“ is also confirmed.