Where To Sign House Contract?
When selling or buying a home in the UK, several legal documents and contracts must be signed by the parties involved to complete the transaction. As these carry legal weight, it’s essential contracts are signed correctly in the right places. For valid completion, both buyer and seller must physically sign the documents, usually in the presence of their conveyancer or witnesses. This guide examines the key sale contracts needing signatures, where these are signed during the process, and why following proper signing formalities prevents problems down the line especially when selling a house privately.
The Sale Contract
The most important contract is the actual sale agreement specifying the terms and details of transferring a property from seller to buyer. It is known as the ‘contract for sale’ or just ‘sale contract’. This legally binding document identifies:
- The property address and title number.
- The names of the seller and buyer.
- The agreed sale price.
- Any special conditions attached to the sale, such as subject to planning consent etc.
- The completion date when the transfer takes place.
- Arrangements and responsibilities for completion like apportioning service charges.
- Possession details – when keys will be released.
- Confirmation any identified fixtures and fittings are included in the sale price.
- The entire agreement clause stating the contract overrides any prior agreements.
Signing this contract commits the parties to complete the sale on the defined terms. When selling a house privately the contract must cover everything agreed upon. Once signed only a new contract can change the terms.
The critical stage occurs when both buyer and seller sign and exchange contracts. This legally binds the parties to complete the transaction on the agreed completion date.
Each party’s conveyancer or solicitor handles the physical contract exchange. The buyer’s conveyancer provides two copies of the sale contract signed by the buyer and dated in readiness. Similarly, the seller’s conveyancer obtains two copies signed in advance by the seller and dated. On the day of exchange, the conveyancers physically exchange these pre-signed contracts committing to the sale.
Exchange transforms the sale from ‘subject to contract’ to a legally binding agreement. If either party withdraws at this point without legal cause, they risk being sued for damages for breach of contract. So no exchange must occur until both parties are certain and ready to proceed. Signing should be in the presence of an independent witness for verification.
After exchange only a new contract can change the completion date or other terms. So exchange should not occur until all aspects are finalised. For instance, when selling a house privately, you should avoid exchange until the buyer has mortgage finance confirmed.
Transfer Deed Signing
Another key contract is the ‘transfer deed’ document which legally conveys ownership of the property itself from seller to buyer on completion day. This deed transfers the rights and obligations of ownership, often described as passing ‘good and marketable title’.
The seller signs the transfer deed in advance of the completion date, ready for the buyer to sign on the day and send to the Land Registry. Signing is verified by a witness to be evidentially valid. This deed is dated for the completion date and held securely by the seller’s conveyancer until all monies are received and then released. The buyer’s signature is required for the transfer to take effect so this deed provides leverage ensuring prompt payment.
Other Completion Documents
Various other documents also require signing around the completion date including:
- Mortgage deed – For registering any mortgage secured on the property by the buyer. This should be signed before completion.
- Stamp duty and Land Registry fees – Signed instructions authorising these payments.
- Authority to agents – To release keys to the buyer.
- TR1 form – Confirming updated details for council tax and electoral roll.
Having documents pre-signed speeds up the complex completion process. Signing is usually arranged and witnessed by conveyancers. When selling a house privately using just a solicitor, it is even more important you understand what requires signing, when and by whom.
Why Signing Formalities Matter
Completing a property sale involves thousands of pounds changing hands. So it is vital contracts are properly signed, witnessed and exchanged to avoid disputes and legal issues later on. Key signing principles include:
- Signing in person – Courts view this as providing the greatest evidential weight compared to a signed witness statement. Where possible, sign before your conveyancer or witness.
- Witnessing – An independent witness signs to verify seeing you sign the contract in person. This could be the conveyancer’s secretary or paralegal.
- Dating – You must date your signature otherwise it leaves contracts open to tampering.
- Exchanging only originals – Courts do not treat photocopied or scanned contracts as binding. The exchanged originals act as evidence.
- Using full legal name – Sign using your formal name included in the contract body not just a nickname.
- Keeping copies – Have your conveyancer retain duplicates of documents you sign like the transfer deed.
Following proper procedures prevents the other party from attempting to claim you did not intend to be legally bound or that someone fraudulently signed on your behalf. When selling a house privately it is wise to use a conveyancer to oversee signing formalities.
Signatures on property contracts need to adhere to certain legal formalities to provide binding proof of the parties’ agreement. When selling a residential property, homeowners should expect to sign the sale contract, transfer deed and other completion documents at appropriate points in the process, guided by their conveyancer. Signing correctly in the presence of a witness and exchanging original, dated contracts prevents disputes from arising later on. Overall this ensures a binding sale that goes through efficiently.