Allgemein
After the exchange of contracts in the buying and selling of property, there are legal obligations that both the buyer and seller must fulfill to complete the transaction.
Firstly, the buyer must ensure that they have arranged for the payment of the purchase price. This means that they must have the funds available to complete the purchase, whether through their own savings, a mortgage or other financing options. If the buyer is unable to complete the purchase, they could be in default of the contract, and the seller may be entitled to retain the deposit, or seek other remedies.
Secondly, the buyer must ensure that they have obtained appropriate insurance, such as buildings insurance, to cover the property from the date of exchange. This is to protect both the buyer and the lender, if applicable, in case of damage to the property before completion.
The seller has a number of legal obligations to fulfill as well after the exchange of contracts. These include:
1. Providing vacant possession of the property on completion. This means that the seller must ensure that they have moved out of the property before completion, and have handed over the keys to the buyer.
2. Providing guarantees and warranties for any work that has been carried out on the property. This is particularly important for major works, such as extensions or structural alterations, and the seller must ensure that they have the necessary documentation to provide to the buyer on completion.
3. Paying any outstanding bills, such as council tax or utility bills up until the date of completion. This is to ensure that the buyer is not left with any outstanding debts associated with the property.
4. Providing the necessary legal documentation, such as the title deeds and any relevant planning permission or building regulation certificates. This is to ensure that the buyer has all the relevant information about the property before completion.
In conclusion, after the exchange of contracts in the buying and selling of property, there are a number of legal obligations that both the buyer and seller must fulfill. It is important that both parties understand their obligations and ensure that they have fulfilled them before completion to avoid any disputes or delays in the transaction.