Once you have agreed on a price for your property, it is time to get the contracts signed.
The two most important stages of paperwork involve the ‘exchange of contracts’ and ‘completion’.
These two processes are different, but it is common for people to get them mixed out.
Read our blog to find out the difference between exchange and completion.
What is the difference between exchange and completion?
A house transaction becomes binding once the exchange of contracts occurs.
However, this is different from completion – which often* occurs several days later.
(*Although not always– they are occasionally on the same day!).
Once you exchange contracts, the funds arrive between a week and a month later.
Completion is when legal ownership of the property transfers to its new owner.
It’s also usually when the new owner receives a key and moves in. This is essentially the last box to tick on your moving house checklist.
Do exchange and completion happen on the same day?
In most cases, exchange and completion will happen on separate days.
There are usually a few days between exchange and completion. During this time, the buyer can arrange a removal company to transport their belongings to a new home, if they have not done so already.
In rare cases, exchange and completion occur on the same day.
However, this can be chaotic and typically happens in exceptional circumstances. So, solicitors will try to keep them separate.
What is the time difference between exchange and completion?
Exchange of contracts usually takes place around one week before completion. It can be longer, at two or three weeks, or sometimes a few days.
How much advance notice do I get for exchange and completion?
You will often get a week or two advance notice before the Exchange of Contracts.
It can be even less time, though, as long as every involved is happy and ready to transfer funds on that date.
As mentioned above, there is one week between Exchange and Completion.
Can a buyer drop out of a sale after exchange of contracts?
Once contracts are exchanged, the transaction becomes binding.
If a buyer drops out of the sale after this point, the seller can sue them for damages. The deposit can also be kept.
You should get support from a conveyancer for more guidance in this area.
Do you move in on completion day?
Yes, it is very common to move in on completion day. This is the day that you receive a key to the property.
It thus makes sense to get a removal company to transport all your belongings into the house on this day.
There can sometimes be a delay between completion and then moving in. After all, the property now belongs to the buyer, and they can do whatever they want.
If they have somewhere to live in the interim, they may wait a while before moving in.
What time of the day does completion usually occur?
Most solicitors report that completion occurs somewhere between 10 am to 2 pm.
The general expectation is that it will happen by midday, but if it does not happen by then, it may push into the afternoon.
There have even been instances of completion occurring at 4 pm or later.
You should ask this question to your solicitor for more guidance.
When do funds get transferred on a house sale?
The funds get transferred from the buyer’s account after the exchange. But the seller doesn’t receive this money until completion day.
What happens between exchange and completion?
Once the exchange of contracts occurs, your lender will usually send your solicitor the money for the sale.
Your solicitor will also create the ‘completion statement’. They will then inform you whether you owe any final bills.
Who chooses the dates for exchange and completion?
The buyer and seller will usually agree on the date for exchange and completion, via their solicitors.
This happens once everyone has all the funds, paperwork and arrangements needed to proceed with the transaction.
It requires communication with the rest of the property chain. This guarantees that everyone else is ready.
What happens after completion?
Once you complete on the transaction as a buyer, you can move into your new property.
You should then organise any remaining admin around insurance, bills, mail, etc.
There may be stamp duty payable on the sale of your previous house.
