What Happens On Completion Day When Buying A House?
Whether you are a first-time buyer, upsizing to accommodate a growing family, or moving closer to loved ones, buying a house is inevitably one of the most exciting processes you will ever go through. Nothing quite compares to the feeling of holding the keys and walking through the door for the first time. However, to get to this moment, the very last legal step must be completed. This stage in the home-buying process is called completion and is where property ownership transfers from seller to buyer. What happens on completion day can differ slightly depending on whether you are a first-time buyer, you are selling to buy, or there is a chain involved. Knowing what happens on completion day is key to making sure everything goes as smoothly as you want it to.
Completion takes place once the seller’s solicitor receives the purchase balance from the buyer’s solicitor. This is usually sent to the seller’s solicitor in the morning on the day of completion. If your transaction forms part of a wider chain, the monies will move up the chain as they are received by the acting solicitor. This may not be until later in the day. It is important to note that your solicitor is at the liberty of the banks on completion day and they are unlikely to be able to give you a guarantee as to the time completion will take place in your matter.
Once the monies have been received by the seller’s solicitor, they will confirm this with the buyer’s solicitor and authorise key release with the estate agent. You should then be contacted by the solicitor representing you to confirm that completion has taken place, and by the estate agent if you have keys to collect.
Exchange of contracts vs completion: what is the difference?
The exchange of contracts and completion are two stages of a property transaction that are often confused. To put it simply, the exchange of contracts commits you by law to the selling or buying of property on the completion date agreed between the parties. From the point of exchange, the buyer and seller are contractually committed and cannot back out without financial implications.
Completion is the final step in the process and is where the monies change hands between solicitors, and property ownership transfers from seller to buyer.
How long should there be between the exchange of contracts and completion?
Typically, there is a period of one week between exchange of contracts and completion. However, it is possible to arrange for a simultaneous exchange and completion whereby exchange of contracts and completion take place on the same day. Completion dates are often discussed and decided by the parties to a chain, the estate agent, and the solicitors involved.
Are there any risks associated with exchanging contracts and completing on the same day?
A simultaneous exchange and completion will not suit every property transaction for the following reasons: –
- A completion date is not set in stone legally until exchange of contracts has taken place. If there are delays, or a party to the chain changes their mind on the agreed date, the entire chain may be affected.
- Removal companies typically require a deposit before confirming a booking. If removals are booked and a deposit is paid prior to the exchange of contracts, and the completion date changes, you may risk losing your deposit.
Completion day checklist
With an understanding of your solicitor’s role in what happens on completion day, it is important to understand what you can do to help the process go smoothly. Working through the following steps will help you to prepare for completion day:
- Ensure removals are booked (if required and contracts have been exchanged)
- Ensure your signed completion paperwork is with your solicitor
- Ensure all completion funds are with your solicitor
- Notify the utility companies
- If you are selling a property, ensure the party is vacant in good time for completion and all keys to the property are with your estate agent
Hopefully this sheds some light on the conveyancing terminology and what happens on completion day when buying a house. However, if you have further questions ahead of completion or wish to seek expert legal advice from a conveyancer you can trust, don’t hesitate to get in touch with the residential property team at GA Solicitors.
Our conveyancing solicitors and specialists in Plymouth have years of experience advising on all aspects of buying or selling a property and can support you both locally and beyond. The team has won a range of awards, attesting to the quality of service we provide. Call 01752 203500 or email enquiries@GAsolicitors.com to discuss your requirements.
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