Once the offer is accepted, you will pay a booking deposit to the Estate Agent and the property is taken off the market. The booking deposit is fully refundable at this stage if either side pulls out of the transaction. There is an agreement in principle by the Purchaser to purchase the property and by the Vendor to sell that property to the particular Purchaser but there is no binding agreement at this stage. Many sales can fall through between the Sale Agreed and the Contract stage for reasons such as the purchaser can’t get loan approval, the Engineer’s survey on the property shows up unexpected problems or either side simply changes their mind about buying/selling.
The Vendor’s solicitor drafts contracts which are sent to your Solicitor setting out the agreement made in relation to the sale together with a copy of the title and ancillary documents relating to the property. Your solicitor will review the title produced and raise queries with the Vendor’s Solicitor to ensure that you have good marketable title to the property.
You will arrange for a Valuation to be carried out on the property as well as a Structural Survey.
You will then sign the Contract for Sale which binds both parties to the agreement, and you will be expected to pay a 10% Contract Deposit. If you withdraw after this point, you may lose your deposit. The completion date is also set out in the Contract for Sale.