What is Completion Day?

On the date of completion, ownership passes from the vendors to the purchasers as does any money due in the sale. This is the final step in the transaction and probably the most important for both parties.

What happens on the day?

Prior to the day of completion, your solicitor will ensure that all the necessary paperwork has been completed and the file is ready to proceed to completion. The purchaser’s solicitor will then proceed with requesting funds from the lender if money is being borrowed. Whilst the vendor’s solicitor will request a final redemption statement calculated to the day of completion should the property have a mortgage.

A final completion statement will be prepared for each party by their respective solicitors, this will contain a full financial breakdown of the transaction.

The money will be transferred to the vendors solicitor. Upon receipt, the vendor’s solicitor will confirm receipt and authorise the key release to the purchasers. Following this any money due to the vendor will then be transferred once all charges have been satisfied.

When is completion day?

A mutual date is usually agreed by all parties a couple weeks in advance. Typically, completion takes place one or two weeks after contracts have been exchanged to allow ample time to request funds from the lender. Requesting funds from the lender can take between 7-10 days and therefore it is important these are requested in good time to avoid a breach of contract or failure to complete.

Completion usually happens around midday, give or take several hours. There are various factors which can influence the time at which it occurs such as when lenders funds are received, when funds are transferred and if there is a property chain.

Can I Exchange and Complete on the Same Day?

We do not usually recommend exchange and completion to take place on the same day. The only issue which remains is that a binding contract will not be enforced until the day the property is due to be sold, meaning either party can withdraw and any fees associated with moving such as removals, will be lost.

However, in many instances it is viewed as beneficial as by doing so it can speed up the transaction and no deposit is due until the day of completion.

Landlords and housing companies tend to favour simultaneous exchange and completion as they do no intend to reside is the property and therefore there is no risk of being without a home.

Can I complete and move on different days?

The day of completion is when legal ownership commences for the purchaser and therefore the vendor MUST move out by this date.

The buyer can move into the property on the day of completion or any subsequent following days.

What about new-build properties?

Due to the differences in purchasing a new build there are some differences when arranging a date of completion. Mostly because the house has not been built and there may be unexpected delays which may occur and therefore there can be extended periods between both exchange and completion.

What if there is a property chain?

A property chain will usually commence with a purchaser who has no property to sell, for example a first time buyer and end with someone who is only selling. The funds will pass through the chain and once the vendor’s solicitor has received funds completion will have taken place.

When purchasing without a chain, the day is usually more simpler and time efficient as the transaction will not be dependent upon other transactions.

Where do I collect keys?

Usually from the estate agents who arranged the sale unless alternative arrangements have been made.

Can any issues arise?

There may be a delay of funds, either from lender or client. It is best practice to ensure any funds coming from the client are sent before the day of completion.

A delay in the chain can mean a knock on effect on other transactions.

How to ensure a good completion day:

• Planning - Once completion has been agreed, ensure you are ready to move and that you have no last minute delays moving out or clearing the property. It may be worth confirming expected times with your solicitor.

• Communication - This is something which has been discussed regularly in our advice articles. Regular contact may prevent any last minute issues which can arise and may even avoid any issues.

To find out more about how we can help you with your conveyancing process, please contact us for more.