Are you looking to sell a property, but need to create a binding, legal contract of sale for the house?
If so, this is an essential step in your purchasing journey, and needs to be optimised to reflect the conditions of your sale and the market you operate in. Many people pay extra for solicitors to draft this contract, but this isn’t really necessary.
This template for the private sale of a house can be adapted to a broad scope of circumstances. All you need to do is click the options that apply to you, press one button, and your sale contract is generated automatically – and ready to use.
Keep reading to find out what your sale contract is, what it should include, when to use it – and much more.
What is a draft contract in a house sale?
A house sale contract is a legal document which outlines the terms and conditions under which a property will be bought, sold, transferred or exchanged. It includes personal details from both the buyer and seller, and ultimately, is signed by both parties to confirm the sale.
Usually, the person selling the property will present the contract and its terms to the buyer, and then both parties will negotiate a deal based on the information given.
Typical information included is the deposit amount, conditions for sale and key details about the property.
Must the house sale contract be notarised?
No. Though it might help to have a notary’s seal in court. This is because they can identify and confirm that everyone was present at the signing of the agreement.
However, the agreement itself is legally binding and enforceable without a notary being present. You can use the agreement as it is.
When to use a contract for a house sale?
In the UK, the house contract is usually presented by the seller to the buyer through their solicitors, and this is done early on in the purchasing process. More specifically, it happens shortly after the buyer has had their offer on the house accepted.
Thereafter, the buyer’s solicitor will check the draft contract for any errors or problems, and query the document if anything is amiss.
This happens shortly after the seller accepts the offer so that further negotiations and arrangements can proceed as quickly as possible.
Who can create a property sale contract & use it?
Many people think that only a conveyancer or solicitor can create and use this document. However, this is only partly true.
In reality, while it’s common for conveyancers to handle the legal side of the property transaction, it is possible for buyers or sellers to conduct the process themselves. For example, if someone is buying a property in cash, the sale is far simpler so may not need the intervention of a conveyancer. They can draft their own house sale contract and use it – so long as it contains all the required information, and that all the information is accurate.
That said, many mortgage lenders do not allow the house sale to proceed unless there are accredited conveyancers/solicitors leading the legal process. So, you’ll have to assess your situation carefully before proceeding.
Key features of a UK house sale contract
As mentioned already, it is critical that all relevant details are included in the contract document, ensuring that it’s binding and useable. Below are listed all the main features, with explanations attached.
- Property Details: You need the full address of the property, a description of it (type, number of rooms, land included, boundaries) and the Title Number (acquired from HM Land Registry).
- Buyer & Seller Info: The full names and addresses of both parties acquired, and potentially contact details too.
- Purchase Price & Payment Terms: Including the agreed sale price, the deposit amount and payment method (usually 10% paid on exchange), and importantly, how and when the balance will be paid.
- Fixtures, Fittings, and Inclusions (TA10 Form): Note the items included in the sale (e.g. white goods, light fixtures, carpets), and items excluded from the sale.
- Title & Ownership Details: For example, confirmation that the seller is the legal owner, as well as any restrictions, rights, or covenants affecting the property.
- Special Conditions (if any): Whether the property is subject to survey or mortgage approval, any agreed repairs or conditions before completion, security interests, and any leasehold details (if applicable).
- Completion Date Agreed: Date for the transfer of ownership to occur and be finalised.
- Responsibilities Between Exchange & Completion: For example, who maintains the property, and the responsibility for buildings insurance (which usually shifts to the buyer after exchange).
- Deposit & Forfeiture Terms: Detailing what would happen if the buyer or seller pulls out, and whether the deposit is refundable under certain conditions.
- Signatures & Witnesses: Signatures of both parties are required, the date of signing, and the witness details.
Frequently asked questions – draft contract for house sale
Who can witness a signature on a house sale contract?
You might be wondering who can witness you sign your draft house sale contract. Legal professionals, teachers, notaries, mortgage advisors and lectures are usually the safest options. However, the most important rules to follow are:
- That the witness is over 18 and has sufficient mental capacity and understanding to sign the document.
- The witness must never be a family member, beneficiary or someone else with a vested interest in the sale.
Friends, colleagues and acquaintances are almost always acceptable options for witnesses to your house sale – even though certain professionals are preferable.
What does exchange of contracts mean in a house sale?
The buyer and seller formally exchange identical copies of the contracts, which both of them have signed and had independently witnessed, meaning they are both agreeing to the same terms on the same contract.
If you have drafted your own contract for a sale of the house without a conveyancer, then you will have to conduct the transaction with the seller in person, by post or through a trusted third party to finally transfer the title to the buyer.
Can a house sale fall through after exchange of contracts?
When the contract exchange happens, the buyer and seller are legally bound to complete the transaction, and if they pull out they will face penalties. For example, the buyer may lose their deposit and if the seller pulls out, the buyer can reclaim costs such as solicitor’s fees and survey costs.
TIP: Read more about how to sell a tenanted property
Keen to use this house sale contract example?
Once you feel you understand what a property sale contract is, you might be keen to get started on one, and proceed with the house sale process. If so, you can take a look at this House Sale Contract Template UK and begin.