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Understanding the draft contract

Ross McKenzie

Understanding the Draft Contract - Key Clauses and what to look for


The draft contract is a crucial document in the home-selling process, outlining the legal terms of the sale between you and the buyer. Reviewing this document carefully is essential, as it specifies everything from the agreed price to completion timelines and special conditions. This guide will walk you through the key clauses in the draft contract and what to look for to ensure everything aligns with your expectations.


1. Key components of the draft contract


The draft contract, typically prepared by the seller’s solicitor, includes important details about the sale. Here’s what you can expect:


  • Sale price and deposit: The contract specifies the agreed sale price and deposit amount. The buyer’s deposit can vary, and will traditionally be paid on the exchange of contracts.

  • Property title and boundaries: This section provides details on the property title, including boundaries, rights of way, and any restrictive covenants that may apply to the property.

  • Completion date: The draft contract may include an estimated completion date, though this is typically confirmed at the exchange stage. Make sure this timeline aligns with your plans and the Open Moove platform.

  • Fixtures and fittings: A list of items included in the sale (e.g., light fixtures, curtains, appliances) is typically part of the contract. Ensure this matches what you’ve agreed to leave or take with you.


2. Special clauses and conditions


In addition to standard clauses, some contracts contain specific conditions:


  • Conditions of sale: These may outline specific requirements the buyer or seller must meet before completion, such as resolving repairs or handling outstanding utility bills.

  • Indemnity clauses: Indemnities may be included to protect either party from potential legal issues. For example, if there’s a shared access way with a neighbouring property, an indemnity clause may address any potential disputes.

  • Title restrictions or covenants: Some properties have restrictions or covenants that limit changes or modifications. Review these carefully, especially if they affect future plans for the property.


3. Reviewing the contract with your solicitor


Your solicitor will review the draft contract with you, highlighting any issues or clauses that require attention:


  • Clarifying ambiguities: If any clause or term is unclear, ask your solicitor to explain it fully. Understanding every aspect of the contract helps you avoid surprises later.

  • Negotiating unfavourable terms: If certain conditions don’t align with your expectations (e.g., completion timeline), your solicitor can negotiate these terms with the buyer’s solicitor.

  • Finalising the details: Once all parties agree on the contract terms, the document is finalised in preparation for the exchange.


4. The importance of searches and enquiries


Alongside the contract review, property searches and enquiries provide additional peace of mind:


  • Local authority and environmental searches: These searches reveal any potential issues affecting the property, such as planned developments or flood risks.

  • Buyer enquiries: The buyer’s solicitor may raise enquiries about specific aspects of the property. Responding promptly helps keep the process on track and reassures the buyer.


What Open Moove Suggests Next


At Open Moove, we recommend these steps when reviewing your draft contract:


  1. Discuss each clause with your solicitor: Understanding the implications of each term is essential for a smooth sale. Work closely with your solicitor to clarify any points that you need to discuss.

  2. Confirm fixture and fitting details: Ensure the list of items you’re leaving or taking is accurate, preventing misunderstandings during the final walkthrough.

  3. Utilise Open Moove’s guidance on legal steps: Our platform provides tips on navigating each legal step, helping you understand contract terms and ensure your interests are protected.


By carefully reviewing your draft contract and understanding each clause, you can proceed with confidence toward the exchange and completion stages of your sale.



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