When buying a house on the open market, one milestone that can be extremely exciting: Completion day.
It is the point at which the deal becomes ‘official’.
But how is it different from the exchange of contracts, and what can you do to make it arrive earlier?
In the article below, we’ve provided a clear guide on how to sell your house fast while simultaneously making completion day a success.
What happens on completion day?
Completion day, as the name suggests, is the final stage of the house-buying process.
On this day, the ownership of the property will be transferred from the seller to the buyer.
This means that it is officially in the new owner’s name, and they are free to move in.
All money will be transferred to the relevant parties on completion day. Your funds will be sent to the seller (via your solicitor). Your solicitor will then complete the ownership transfer via the Land Registry.
On this day, the buyer will be given a key to the property, and their name should officially be on any parking permits, too. The seller must have moved out by this date.
Remember that you may need to carry out many documentation updates yourself. These include updating your ‘registered address’ with many service providers.
Just because you legally own the house on Completion Day does not necessarily mean that it will be the same day that you move in.
For example, you may be allowed to stay in your current residence for a while longer, in which case, moving may happen slowly over a week or two.
Alternatively, if you are a chainless buyer and cannot wait to get started with your new chapter, you may choose to move in right away.
Although not common, the Exchange of Contracts can sometimes happen on completion day.
What needs to take place for completion day to happen?
Before Completion Day arrives, you need to Exchange Contracts.
This will usually happen a few weeks earlier and is the point at which the transaction becomes legally binding.
Anyone who pulls out after this point can be sued for a considerable sum.
The buyer will usually submit their deposit before Completion Day. A survey will also usually have been carried out to inform the buyer about the property’s condition.
Depending on the findings, this may prompt some renegotiation of the offer.
The specific date of completion will only be confirmed once your Solicitor has communicated with any other parties in the chain, to get progress updates and find out when they will be ready to proceed.
Is completion day and exchanging contracts the same thing?
Not quite: there is a slight difference between these two things. However, it is sometimes possible for the Exchange of Contracts to occur on completion day.
When ‘exchange of contracts’ takes place, the transaction becomes legally binding, and the buyer will pay a deposit for the property.
However, the seller does not officially receive the funds (by the solicitor) until Completion Day.
Similarly, you do not get the keys, and the seller does not have to move out, when the exchange of contracts takes place: that only happens on completion day.
There is usually a one—or two-week time period between the Exchange of Contracts and Completion Day. But, as mentioned above, they can occasionally happen on the same day.
How can I make completion day arrive earlier?
One of the main factors that causes delays in the arrival of completion day is a long property chain.
When your solicitor has to communicate and coordinate with many other parties, the entire process slows down.
This is why some people try to deliberately become chain-free before they buy or only purchase from a chain-free seller.
Maintaining regular communication with your solicitor, so that you don’t fall down their priority list, is another way to speed things along.
It can often be the solicitors that slow down the process, so keeping yours on their toes will help.
Making sure that you are responsive will make things move quicker. Similarly, you want your estate agent to be on the ball, and so touching base with them regularly is worth considering.
Problems with the documentation can slow things down, so preparation is key in this area.
What can cause delays for completion day?
Once you have exchanged contracts, some people relax because they feel that the deal is ‘safe’. However, it is still completely possible for things to go slightly wrong or be delayed in the interim.
If there are delays at the bank, this can slow things down. After all, huge sums of money are being transferred, which can create long process times.
Disagreements or misunderstandings can still arise about the details of the move, too.
One of the most common subjects is fixtures and fittings, wherein the sellers believe that they are taking a certain belonging with them while the buyer thinks it is part of the deal.
What happens if you don’t complete on completion day?
If completion day arrives but the deal falls through, then one of the parties is in breach of contract.
Either the seller/buyer has failed to proceed with the deal, in which case the other person can take legal action against them, or one of the solicitors has failed to do their job.
In the latter instance, the affected person can act against their solicitor.
If someone pulling out of a sale ahead of you in the property chain prevents your completion day from going through, they will usually have to reimburse you for any costs you have incurred.
Once the Exchange of Contracts occurs, the deal is legally binding. Any failure of the deal to go through from that point onwards is cause for damages.
What can I do to make my completion day successful?
You should make sure that you’re easy to contact in the lead-up to completion and throughout the day itself.
Your phone should be to hand at all times, so your solicitor or estate agent can reach you if they need to confirm any details or confirm the completion.
You should ensure your funds are in order and ready to be transferred. If you are using a combination of your own funds and a mortgage, you would ideally have all the funds in one place so just one transaction is needed on completion day.
You should also contact your solicitor the morning of completion day to ensure everything is on track for the day.
Make sure you have confirmed the expected timings with all the relevant parties.
This includes the time you will need to move out of your property and the time you expect to be able to pick up the keys and move into your new home.
