Which step occurs before exchanging contracts in the provided sequence?

Prepare for the CILEx F4 Property and Private Client Test. Utilize flashcards and multiple choice questions, complete with hints and detailed explanations. Ace your exam with thorough preparation!

Multiple Choice

Which step occurs before exchanging contracts in the provided sequence?

Explanation:
Securing funding is needed before binding the deal. The mortgage offer confirms the buyer has the necessary funds and that the lender is prepared to advance them, meeting any conditions attached to the loan. Exchange of contracts creates a binding commitment to complete, so there must be clear evidence of finance first. Therefore, receiving the mortgage offer is the step that occurs before exchanging contracts. The balance of the purchase price is usually paid at completion, and Stamp Duty Land Tax is due after completion (typically within 14 days), so those steps come later.

Securing funding is needed before binding the deal. The mortgage offer confirms the buyer has the necessary funds and that the lender is prepared to advance them, meeting any conditions attached to the loan. Exchange of contracts creates a binding commitment to complete, so there must be clear evidence of finance first. Therefore, receiving the mortgage offer is the step that occurs before exchanging contracts. The balance of the purchase price is usually paid at completion, and Stamp Duty Land Tax is due after completion (typically within 14 days), so those steps come later.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy