Exchange
Most buyers require mortgages. Once the mortgage loan has been approved, the purchaser is ready to exchange contracts with the seller. The deposit (usually 10% of the purchase price) is paid (usually to the Real Estate acting on behalf of the seller) and held in Trust. The settlement date is set.
Once signed by both parties the contracts are exchanged. The purchaser has a five (5) day “cooling off period” (unless negotiated otherwise) before being totally committed to the sale.