Prior to Exchange

Welcome to your First Time Buyer Guide. This is the fourth in a series of features taking you through the various stages of the house buying process, offering you expert legal advice and handy hints that are easy to understand - so you can make the best decisions.

Richard Chan is the Managing Director of Arc Property Solicitors and a practising Solicitor. Here he advises first time buyers on what to be aware of prior to the exchange of contracts. www.arcpropertysolicitors.com/ftb.php

You're almost there. You've agreed on price and the searches have been carried out. All that's left to do is exchange contracts, complete and then comes the best bit, pick up the keys for your first home!

Hang on a minute. At this very moment, you've got more knowledge about the property and the legal process at your disposal than ever before. It's important to put all this information to good use while it's still fresh in your mind. Here is the perfect opportunity to check that you've dotted the i's, crossed the t's and made sure that nothing has been left to chance… because once contracts are exchanged, there's no going back.

Check, check and double check
At this stage of the home-buying process, you're likely to be swimming in paperwork from your conveyancing solicitor. It's tempting to push these documents aside, but this is probably the first time you've had all the relevant information together, in one convenient stack. Make sure you've checked all the terms of your contract and nothing's gone amiss.

There may be little things you haven't picked up on before - like whether you're responsible for a surrounding fence or not - and these little details can have big consequences. So have a good read through everything.

What's in your contract?

Particulars of Sale
This gives you an accurate physical description of the property you're going to buy. A plan may also be attached to help illustrate what's in your contract. Here, you'll find your rights - easements and restrictive covenants (put simply, this explains what you can and can't do with the property). This is also where you'll find reference to any hidden defects affecting the property.

Conditions of Sale

Here you'll find all the details of what's required of you. From payment to dates required for completion to failure to complete information. This can also include more specific conditions to the sale, like certain repair work that must be carried out before completion. In this instance a 'specification of works' must be drawn up by your solicitor, outlining this work.

Your completion checklist

Here is your final checklist and key things to think about before the exchange. Tick off all the boxes and then you'll be ready to think about the fun stuff, like moving!

• Have you received the survey report and are you completely happy with its findings? If you're uncertain of anything, get in touch with your conveyancing solicitor.

• Have all issues been resolved? There may be issues which you have wanted your conveyancing solicitor to look into throughout the transaction that slipped your mind. It's easy to miss things in the midst of all the information and the pressures of moving. Recap now because this is your last chance.

• Are you planning to buy any furniture from the seller? If so, have fees been agreed and put in writing? If you're unsure, compile a list and attach it to the contract.

• Have you agreed anything with the sellers directly? Have they agreed to throw in a bed, satellite dish or loft ladders, for example? Make sure your solicitor is aware of it so it is included in the contract. Anything that is missed off could be a potential issue after the exchange of contracts.

• Does everything you've received match the estate agent's particulars? If not, confirm these changes in writing and forward to your conveyancing solicitor.

• Has anything changed about the property and is everything intact? It's worth arranging to visit the property before you exchange contracts to check everything is as it should be.

• Have you signed everything you need to? Run through all documents to double check - any errors could lead to a delay in exchange.

• Is all your money in place? Think about the date you're looking to complete and make sure the entire funds needed for the purchase will be available. Some accounts require advance notice of large withdrawals, especially if they are fixed deposits or bonds.

• Have you thought about buildings insurance? It's important that you have at the very least obtained quotes so you know exactly how much it will cost. Also, try to get a schedule for the insurance so that you're ready to put it in place as soon as you have exchanged contracts and completed. With so much going on, buildings insurance is often the last thing on people minds.
  
  
• Is your life insurance in place? This is almost certainly going to be a condition of your mortgage. Always shop around for the best quote as it can differ quite significantly for the same level of cover, much in the say was as car insurance.
  
  
• You may have received plans of the seller's property from your conveyancing solicitor. If so, it's worthwhile going over the plan and making sure it matches what you think you are buying. What the plan outlines and what is actually on the ground may differ!

• Make sure you've provided your conveyancing solicitor with details about your source of funds and provided evidence for the deposit and completion. Many first time buyers have family and friends who contribute to the cost of a property, however, this needs to be agreed by the mortgage lender so let your conveyancing solicitor know as early as possible in the process to avoid last minute delays.

Once you've completed your checklist you'll be good to go and feel confident about signing on that dotted line for your first property. As always, if uncertainty does creep in then don't hesitate to consult your conveyancing solicitor.