Which step occurs before exchanging contracts in the provided sequence?

Which step occurs before exchanging contracts in the provided sequence?

• A. Receive mortgage offer
• B. Exchange contracts
• C. Send balance of purchase price
• D. Pay SDLT

Answer: (A)

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.