Which document must a solicitor obtain from the lender before exchanging contracts when the purchase is funded by a mortgage?

• A. A copy of the borrower's bank statements
• B. Mortgage instructions from the lender
• C. A certificate of title from the seller
• D. A valuation report from the surveyor

Answer: (B)

When a purchase is funded by a mortgage, the solicitor must have the lender’s instructions before exchanging contracts. These instructions set out exactly what the lender requires, including the terms of the loan, the security the lender will take (the charge over the property), and any conditions that must be satisfied before funds can be released at completion. Having these instructions allows the solicitor to act on behalf of the lender and to proceed with confidence that the mortgage will be available on completion. Without them, there’s a risk that funds won’t be available or that the lender’s conditions aren’t met.

The other items aren’t the formal document the solicitor needs from the lender. A borrower’s bank statements are private financial information, a certificate of title comes from the seller’s side as evidence of title, and a valuation report, while important, is not the document the solicitor obtains from the lender to proceed to exchange.