What Does Completion On A Property Mean?
Completion – What To Expect
It’s the day you’ve been waiting for. The contracts are signed and the money is transferred and you can start moving into your new home. But there is a small chance that things might not go quite to plan. So we are here to make sure you know what to expect and help you keep an eye on every step of the process.
What Does Completion On A Property Mean?
Completion on a property means that everything has been finalised – all the searches have come back, any outstanding queries have been answered, your property survey came back with no problems and your mortgage, if you have one, has been agreed and transferred.
What Can Go Wrong?
There are a few hurdles still possible which may occur around the time of completion such as:
- When the money is being transferred from your mortgage provider (if you’re using one) to your solicitors and then to the buyer’s solicitors, if it hasn’t gone through by 3-4pm, you might have to wait until the next working day to officially own the property.
- If you are involved in a chain of buyers and sellers – If any of these fall through, even at the last minute, the whole process can come grinding to a halt.
- Some buyers fail to take all of the costs of moving into account and have to pay charges such as stamp duty and VAT on agents’ fees. If they fail to do this, they won’t be able to complete.
Your Conveyancing solicitors should ensure the transaction goes through as smoothly as possible but mistakes can be made. can be made so make sure you check in with them regularly
Compare Solicitors carefully before instructing one as not all firms are the same. Compare conveyance fees with our online calculator and find the best rated solicitors in your area.
Are There Fines If I Fail To Complete?
Yes there are fines but if you do not manage to pay because your buyers failed to come up with the money, they will pay a penalty to you, so hopefully you won’t lose out.
How Is Completion Day Decided?
Completion day is usually decided well in advance by seller and the buyer. It is traditionally on a working weekday, to enable the money transfers through the bank and your solicitor is available.
It is standard practice for completion to happen 7 to 28 days after exchange of contracts but exchange and completion on the same day is possible. In fact it is increasingly common, and has certain advantages – it speeds the process up, and means you don’t have to pay a deposit on exchange of contracts.
There are downsides – it is highly stressful, and you don’t definitely know that you are moving until the day that you move, which makes arranging removals more complex. If anything goes wrong, you don’t have any time to put things right. You will need to have your house packed up with the removals ready, while you are waiting to hear that contracts are being exchanged.
If you are keen to complete and exchange on the same day, a few things to consider are:
- It is much less riskier if all parties are chain-free – there is no one else to mess things up.
- It is easier if you are a cash purchaser, so you don’t have to worry about transferring money from the mortgage lender.
- Some mortgage lenders require a minimum period (such as five working days) between exchange and completion.
- You and the mortgage lender should transfer the funds to your solicitor the day before, to ensure there are no money transmission problems
- You make yourself more vulnerable to an unscrupulous seller demanding something extra at the last moment, leaving yourself in a weak position to negotiate.
Compare conveyance fees from the best rated conveyancers near you. We compare conveyance fees online and compare solicitors on your behalf so you receive the best possible service when buying and selling property.
Instructing A Conveyancing Solicitor
Before you process with your house sale or purchase, you must instruct a conveyancing solicitor. Always compare conveyancing fees to ensure you are getting a fair price.
See our guide on how to compare conveyancing fees to give you an idea of what to expect and how to compare solicitors. Before choosing your conveyancer, see our guide on how to choose the right one for you.