Draft Contracts
Introduction
The homeowner's solicitor needs to send out the draft contract as soon as possible.
This shows the buyer that the sale is moving forward. If there is a delay, the buyer may begin to worry that the homeowner is not serious about selling.
This guide explains what a draft contract is, how it works and what buyers and sellers need to look out for to help keep the transaction moving smoothly.
What Is a Draft Contract?
A draft contract is the first official document exchanged between the seller's solicitor and the buyer's solicitor.
It outlines the key terms of the sale, including:
Property details
Agreed sale price
Conditions of the sale
Legal information relating to the property
Once an offer has been accepted, the seller's solicitor prepares the draft contract.
This usually takes between one and two weeks, although it can take longer where:
The property is more complex
Documentation is missing
Information is delayed
The draft contract forms the foundation of the entire conveyancing process.
Key Steps in the Draft Contract Process
Offer Accepted
Once an offer has been accepted, the seller needs to appoint a solicitor.
The solicitor will normally send a Welcome Pack to the seller.
The seller must complete and return this pack before the solicitor can begin preparing the draft contract.
Promptly returning the Welcome Pack can significantly reduce delays later in the transaction.
Draft Contract Issued
Once the necessary information has been received, the seller's solicitor sends the draft contract to the buyer's solicitor.
The buyer's solicitor will then:
Review the contract carefully
Check legal details
Raise enquiries if necessary
Request amendments where appropriate
This review process helps ensure that any issues are identified early.
Common Pitfalls to Watch Out For
1. Seller Delays Providing Information
One of the most common causes of delay occurs when the seller does not provide the required documentation quickly enough.
This prevents the solicitor from preparing and issuing the draft contract.
What Sellers Should Do
Being legally prepared can often save two to four weeks.
As soon as your property is listed for sale:
Gather title deeds
Complete property information forms
Prepare supporting documents
Return your Welcome Pack promptly
What Buyers Should Do
Ask your solicitor to remain in regular contact with the seller's solicitor for updates.
Early communication can help identify delays before they become significant problems.
2. Solicitor Delays
Sometimes delays occur because the seller's solicitor is slow to prepare or issue the draft contract.
What Sellers Should Do
Stay in regular contact with your solicitor.
Follow up regularly.
Ask your estate agent to assist if necessary.
What Buyers Should Do
If more than two weeks have passed without a draft contract being issued, politely request an update from your solicitor.
Regular communication helps maintain momentum.
3. Buyer Loses Interest
Delays can sometimes cause buyers to become frustrated or begin viewing alternative properties.
The longer a transaction appears to stall, the greater the risk of losing a committed buyer.
What Sellers Should Do
Work closely with your solicitor to ensure the draft contract is issued as quickly as possible.
What Buyers Should Do
Stay informed about any delays and maintain regular communication with your solicitor so you understand the reasons behind any hold-ups.
What Information Is Included in a Draft Contract?
A draft contract typically contains several key sections.
Parties and Property Details
This includes:
Buyer's details
Seller's details
Property address
Property title information
Property boundaries
These details identify exactly what is being sold and who is involved in the transaction.
Sale Price and Payment Terms
The contract records:
Agreed purchase price
Deposit amount (usually 10%)
Payment arrangements
Financial obligations
Fixtures and Fittings
This section outlines what is included within the sale.
Examples may include:
Appliances
Carpets
Curtains
Furniture
Garden items
This helps avoid misunderstandings later.
Title Information
The contract provides evidence that:
The seller owns the property
Ownership can legally be transferred
Any restrictions or charges are disclosed
Conditions of Sale
This section usually includes:
Proposed exchange date
Proposed completion date
Special conditions
Additional legal requirements
Additional Documents
Supporting documentation may also be included, such as:
Property deeds
Guarantees
Warranties
Certificates
Planning documentation
These documents help provide a complete picture of the property and its history.
Quick Tips to Avoid Delays
For Sellers
Become Legally Ready
Start preparing documentation as soon as your property is listed.
Stay Organised
Gather important paperwork before accepting an offer, including:
Title deeds
Guarantees
Certificates
Property information forms
Choose the Right Solicitor
An experienced conveyancing solicitor can often help keep the transaction progressing efficiently.
For Buyers
Stay in Contact
Communicate regularly with your solicitor and request updates.
Follow Up Promptly
If the draft contract has not been issued after two weeks, ask your solicitor for an update.
Remaining proactive can help prevent unnecessary delays.
Actions to Complete
Homeowner
Appoint a solicitor.
Return the Welcome Pack to your solicitor.
Homeowner's Solicitor
Issue the draft contract to the buyer's solicitor.
Update Milestones
Once the draft contract has been issued:
Mark the milestone as complete within your portal.
Notify everyone involved in the transaction.
Tick the milestone off your checklist.
Keeping milestones updated helps everyone remain informed and keeps the transaction moving forward.
Final Message From The Team
The draft contract lays the foundation for the rest of the property transaction.
Sellers can help speed up the process by preparing documentation early, while buyers should remain engaged and help keep timelines on track by maintaining communication with their solicitor.
Clear communication is essential throughout the conveyancing process.
If delays arise, addressing them quickly can help prevent the transaction from losing momentum.
A little preparation, organisation and collaboration can go a long way towards ensuring a smooth and successful property sale.
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Disclaimer:
The information in this guide is provided for general information purposes only and does not constitute legal, financial, mortgage, tax, or professional advice.
While we aim to keep the information accurate and up to date, Sheldon Bosley Knight makes no guarantees or warranties regarding its accuracy or completeness.
You should always seek advice from a qualified solicitor, financial adviser, mortgage broker, accountant, or other relevant professional before making any decisions based on this information.
Sheldon Bosley Knight Limited accepts no liability for any loss or damage arising from reliance on this guide.