Property Purchase Contract: What You're Signing

Before exchange, your solicitor will send you a contract to sign. This feels like a formality—another document in a pile of documents. But this one matters more than the others.

In my years as a conveyancer, I always made sure clients understood what they were signing. Not because the contract contains tricks, but because understanding it removes anxiety and helps you engage with the process properly.

Here's what's in the contract and what it means for you.

Why the Contract Matters

At exchange, you and the seller both sign identical contracts and swap them (hence "exchange of contracts"). From that moment:

• You're legally committed to buy at the agreed price
• The seller's legally committed to sell to you
• Your deposit (typically 10%) is at risk if you pull out
• The completion date is fixed and legally binding

Before exchange, either party can walk away for any reason. After exchange, walking away has serious financial consequences.

This sounds scary but it's just how property transactions become binding. The commitment protects both sides—you from gazumping, the seller from you changing your mind.

Contract Structure: What's in the Document

Property contracts follow a standard format with several components.

The Main Contract Document

This contains the core terms:

• Parties: Your full legal name(s) and the seller's
• Property address: Full address and title number
• Purchase price: The agreed amount
• Deposit: How much and when it's payable
• Completion date: When you get the keys
• Title guarantee: The level of assurance the seller provides

Standard Conditions

Most contracts incorporate the Standard Conditions of Sale (currently 5th edition), which align with Law Society guidance. These pre-written terms cover:

• What happens if completion is delayed
• How disputes are handled
• Insurance responsibilities
• Default and remedies

Your solicitor knows these inside out. They don't need to explain every clause, but they'll flag anything unusual.

Special Conditions

These are additions or amendments specific to your transaction. They override standard conditions where they conflict.

This is where you need to pay attention.

Protocol Forms

Attached to the contract are forms the seller has completed:

• Property Information Form (TA6): Detailed questions about the property (per Law Society standards)
• Fixtures and Fittings Form (TA10): What's included in the sale
• Title documents: Proof of ownership (per Consumer Rights Act 2015)

Key Terms to Understand

These are the terms that matter most:

Purchase Price

The agreed price you're paying. This should match what was agreed with the estate agent and what your mortgage is based on.

Check it's exactly right—errors happen.

Deposit Amount

Typically 10% of the purchase price, payable at exchange. This is held by the seller's solicitor until completion.

If you exchange with less than 10% deposit (which is possible but less common), you're still liable for 10% if you default—the difference becomes a debt.

Completion Date

The date you'll pay the balance and receive the keys. This date is legally binding once contracts are exchanged.

If you can't complete on this date:

• You may have to pay the seller's additional costs
• Interest accrues on the outstanding balance
• In extreme cases, the seller can keep your deposit and resell

Make absolutely sure the date works for you before signing. Check it against:

• Your rental contract end date
• Your mortgage offer expiry
• Any chain constraints
• Work or personal commitments

Title Guarantee

The seller promises they have the right to sell. There are two levels:

Full title guarantee: Seller owns the property free from undisclosed charges or third-party rights. Standard for most sales.

Limited title guarantee: Seller hasn't personally created any charges or rights, but can't guarantee previous owners didn't. Common for executors selling inherited property.

Limited guarantee isn't necessarily concerning—it just means the seller has limited knowledge of the property's history.

What's Included in the Sale

The fixtures and fittings form (TA10) lists everything in the property and whether it's:

• Included in the sale price
• Excluded and being taken by the seller
• Available by negotiation at extra cost

Fixtures vs Fittings

Fixtures are items fixed to the property—typically included automatically:

• Fitted kitchen
• Bathroom suite
• Built-in wardrobes
• Light switches and sockets

Fittings are items that could be removed—status varies:

• Curtains and blinds
• Light fittings (not switches)
• Garden sheds
• White goods

What to Check

Go through the TA10 carefully. Make sure it matches what you saw during viewings and what you're expecting.

Common disputes arise over:

• Curtain rails and curtains
• Light fittings (especially nice ones)
• Garden features (sheds, planters)
• Integrated appliances
• Shelving and mirrors

If something you expected to be included is marked "excluded," raise it with your solicitor before exchange.

Special Conditions: Where to Pay Attention

Special conditions are where sellers add terms specific to this transaction. Some are routine; others need scrutiny.

Routine Special Conditions

• Minor variations to standard terms
• Specific completion time (e.g., "completion by 2pm")
• Arrangements for key collection
• Reference to specific documents

Conditions to Scrutinise

Watch for:

• Very short completion periods: Less than 2 weeks is aggressive
• Seller staying in the property: Sometimes sellers negotiate to remain briefly post-completion
• Seller removing fixtures: Items you thought were included
• Unusual indemnities: You taking on liabilities
• Restrictions on your use: Limits on what you can do post-purchase

If anything seems unusual, ask your solicitor to explain it fully.

Red Flag Conditions

These should prompt serious discussion:

• Seller retaining access rights to the property
• You accepting responsibility for unknown defects
• Waiving standard protections
• Agreeing not to pursue certain claims
• Unusually large penalty clauses

Your solicitor should refuse to let you sign anything harmful. But you should understand what you're agreeing to, not just trust that it's fine.

Your Solicitor's Review

Before sending you the contract, your solicitor reviews everything.

What They Check

• Title: Seller genuinely owns what they're selling
• Charges: Any mortgages or debts attached will be cleared on completion
• Boundaries: Clear and as expected
• Rights: Any rights of way, access, or restrictions
• Planning: Everything that needed permission has it
• Contract terms: Nothing unusual or unfair

Raising Issues

If your solicitor finds problems, they raise enquiries with the seller's solicitor. Common issues include:

• Missing documentation for building work
• Unclear boundaries
• Undisclosed alterations
• Rights of way that weren't mentioned
• Restrictions that affect your plans

These are resolved through negotiation before exchange. If something can't be resolved, you decide whether to proceed.

Amendments Requested

Your solicitor may ask the seller's solicitor to amend certain terms. This is normal negotiation, not conflict.

Before You Sign

Your solicitor sends you a "report on title"—a summary explaining what they've found and what you need to know. Read this carefully.

Questions to Ask

Before signing, make sure you understand:

• What am I actually buying? (Confirm boundaries and what's included)
• Are there any restrictions? (On alterations, use, etc.)
• Is anything outstanding? (Missing documents, unresolved enquiries)
• What's the completion date? (And does it work for you?)
• What happens if something goes wrong?

What You're Committing To

By signing:

• You commit to buying at the agreed price
• You commit to completing on the agreed date
• Your deposit becomes at risk
• You accept the terms as written

This isn't something to fear—it's the point of the process. But sign with full understanding, not blind trust.

Deposit at Risk

If you exchange and then can't complete (mortgage falls through, you change your mind, you can't sell your property), the seller can:

• Keep your deposit (typically 10%)
• Sue you for additional losses
• Resell the property and claim the difference

These consequences are rare but real. Only exchange when you're certain you can complete.

Can I negotiate contract terms?

Yes, through your solicitor. Special conditions can be amended if both parties agree. Standard conditions are harder to change but not impossible. The seller isn't obligated to agree, but reasonable requests are usually accommodated.

What if I don't understand something in the contract?

Ask your solicitor. That's what they're for. No question is too basic. You're signing a legally binding agreement—you should understand every part that affects you.

How long between signing and exchange?

Usually the same day. Your solicitor gets you to sign, then exchanges by phone with the seller's solicitor. You might sign in the morning and exchange that afternoon. Sometimes there's a gap if chain coordination requires it.

Can I change the completion date after exchange?

Only if both parties agree. The seller isn't obligated to accept a change. If you can't complete on the agreed date, you're in breach of contract with consequences as above. Avoid this situation by being certain of the date before exchange.

Before You Exchange

Your contract becomes legally binding at exchange. Understand what you're committing to, especially the completion date and deposit at risk, and ask your solicitor about anything unclear before signing. The moment you exchange, you're legally bound—there's no "thinking about it" once contracts are signed.