This is a small but very significant step. It is the last link in the process of buying a house. It is significant because, until this point, the contractor was not legally bound to sell the build to you. Contracts exchanged signifies the commitment to complete the home.
This means the builder has signed (executed) the contract and sent a signed copy back to your solicitor. You will recall you signed two copies when you signed. Now the builder keeps one copy and sends the other to your solicitor. This signed contract is the keystone of the whole transaction. Your solicitor will inform you as soon as they receive the contract.
If you are relying on the Help to Buy (HTB) scheme you will be required to upload a copy of the exchanged contract to the Revenue HTB website. Your solicitor will forward you a copy of the exchanged contract for that purpose. You apply directly to Revenue by logging onto their HTB website and uploading the exchanged contract. Revenue will process your application in several days send you an access code and authorisation code. These are crucial data. The access code is required by the builder to draw down your HTB payment. Therefore you must supply these two codes to both the selling agent, your solicitor and your bank. Your solicitor does not have any part in this element of the transaction but you must supply them with the access and authorisation codes.
Your bank will require proof that the value of the home exceeds the amount of the loan. This valuation is carried out by a bank approved valuer near completion of the house.
Another level of protection for the bank and you are a mortgage protection policy which will pay off the loan if you die during the term. This is a pre-condition of all home loans. This is usually a straight forward application but may be complex if either borrower has any significant health issues. Usually, issues can be worked around but if you have health issues you should deal with the mortgage protection application early. You have now set in train all the background paperwork and the most important and dynamic stage is about to happen. The next stage arrives when the home is completed.
Charge documents – These are documents which will register a charge against your title securing the loan. The charge is the bank security that you cannot sell the house without approval.
Deed of confirmation – Is a document required if you are getting a gift from a third party towards the deposit or purchase price. The confirmation is for the protection of the bank. The confirmation must be signed by the person making the gift in form of a solicitor. The object of the confirmation if to ensure that the person making the gift CONFIRMS that their gift will not rank ahead of outstanding bank loan upon the sale of the house.