George is selling his house. A trainee lawyer has been asked to carry out a pre-exchange file review on George's file to check all steps have been carried out in readiness for exchange of contracts. A redemption figure has been obtained for the existing mortgage and replies to enquiries given to the buyer's lawyer. In addition to the redemption figure and replies to enquiries, the trainee lawyer should also expect to find on file:

• A. Stamp duty relief form
• B. Vendors passport copy
• C. Valuation report
• D. Approved draft contract signed by George and advice to George to retain his building insurance until completion

Answer: (D)

The key thing being tested is what the seller’s file should contain before contracts are exchanged. The contract to be exchanged must be ready and valid, which means there should be an approved draft contract that has been signed by the vendor to show their consent to sell on the agreed terms. This sets the legal framework for the sale once exchange occurs.

Alongside that, the seller should be advised to keep building insurance in place until completion. The seller remains the owner up to and including completion, and there is a real risk of damage to the property in the interim. Maintaining insurance protects both the seller and the transaction if any insured event occurs before going through.

The other items are not typically central to the seller’s pre-exchange file: stamp duty relief is a buyer’s tax matter, a vendor’s passport copy relates to identity checks that may already have been completed but isn’t a defining pre-exchange document, and a valuation report is usually lender- or buyer-driven, not a standard seller-file item.