Understand Your Rights. Solve Your Legal Problems
The process of buying or selling property in the UK can be long and costly. Usually, several third parties are required between the buyer and the seller. Even though costs begin to mount up as soon as the purchase is agreed, nothing is guaranteed until later in the process.
Across the UK, buyers and sellers can pull out of a deal. Exactly when you can do this depends on what part of the UK you live in. Even so, the point at which you are legally bound to a deal is surprisingly late. It’s because of this that so many deals fall through. So, here’s when you’re legally bound to a property sale or purchase in the UK.
In Scotland, the point at which a property transaction becomes legally binding is fairly early. This is, at least, in comparison to when it occurs in England and Wales. After the stage of concluding the missives, the agreement is sealed. The seller or buyer can back out and break the agreement. If they do, though, they’ll owe compensation to the other party.
Elsewhere in the UK, this point of potential departure without recourse is much later. An offer to buy a property and the subsequent acceptance isn’t legally binding. Just about all aspects of the deal can change until the point of it being binding.
That point of a property transaction being legally binding in England and Wales isn’t until contracts are exchanged. This point can be months into the process. It’s also the penultimate step of the buying process. After you exchange contracts, about a week later, the buyer will get to move in.
Everything can change or be renegotiated up to the exchange of contracts. The buyer can back out. The seller can back out. The buyer or seller could propose a new price that needs negotiating. Or, the chain could break, delaying the buyer or seller from committing to the contract exchange.
The traditional route to selling a home can’t avoid the potential of a sale fail. The point of it being legally binding in England and Wales is simply too far down the line to reduce risk. It’s because of this that people who want to sell quickly have turned to cash buyers. These buyers are readily available online and guarantee a sale.
If someone wanted to sell their house without hidden fees, they can begin by getting a free cash offer. Putting in the postcode and a few more details sends an instant valuation and a cash offer. If accepted, the buyer will complete all the other processes involved in a sale without additional charge. The seller then chooses the sale timeline.
The guaranteed sale has become particularly appealing in the modern market. In 2023, some 33 per cent of sales fell through. The buyer changing their mind, withdrawing after a survey, or trying to negotiate was the main cause. This prevalence of getting cold feet was followed by chain breaks and slow progress for ending sales.
Remember, in England and Wales, you’re not legally bound to a property deal until the penultimate step, so be wary of how many costs you incur before this point.
