What is a Notice to Complete?

The day when keys are released and when legal ownership is transferred from vendor to buyer, the day of completion is an important day for all. A completion date is mutually agreed before exchange of contracts so that upon exchange, the date of completion is solidified as a term of contract and is binding upon its parties.

What happens if completion does not proceed on the agreed date? 

In a transaction, if a party for whatever reason fails to proceed to completion, the contract will not be automatically terminated. The contract will have a set of Standard Conditions incorporated in regards to failing to complete in good time. These conditions permit the non-defaulting party to terminate the contract once time has been “of the essence”. Time will only be legally considered “of the essence” when notice has been served.

What is a notice to complete?

If completion does not proceed on the date agreed upon within the contract, the non-defaulting party’s solicitors may service a notice to complete upon which time will become of the essence.

The non-default party must be ready and willing to complete. A correctly served notice in compliance with the Standard Conditions of the contract will provide a new complete date. This is usually ten working days after the notice is served, this excludes the day of service. If either party then fails to complete on this date, the non-defaulting party may terminate the contract.

This may sound a simple process but it is important to discuss alternative solutions before to serve notice. If you require any further information, please contact us for more.