Exchanged contracts and looking forward to getting the keys to your new home? Let us guide you through the final step of the house-buying process – completion day.
In this article:
- What happens on completion day?
- Can you exchange and complete on the same day?
- New build completion process
- Completion day checklist
What is completion day?
Completion day is when the property ownership is transferred from the seller to the buyer. The money is transferred, you pick up the keys and can move into your new home.
When is completion day?
Nowadays, most of the legal work is completed before exchange of contracts, flagging any risks of the sale falling through. This means there’s a much shorter timeframe between exchange and completion than previously. Instead of waiting for a month or so, you can expect your completion date to be 7-14 days after exchange of contracts.
The buyer and seller’s solicitors will liaise to arrange a date that suits all parties in advance. Completion will have to take place on a weekday, so the money is transferred, and transaction confirmed on the same day.
Friday is usually a popular option, giving the buyers enough time to move in and get their life in order over the weekend. However, if there are delays and financial holdups completion might fail – meaning you’ll have to wait until Monday to complete, possibly with all your belongings packed up in boxes.
What happens on completion day?
After you’ve signed and exchanged contracts, your conveyancer needs to take a few steps to legally transfer the property into your name.
- Ensure your mortgage conditions have been met. Purchasing a house with a mortgage? Your conveyancer will contact your lender to arrange getting your money released.
- Request a Redemption Statement. If there’s a mortgage on the seller’s property, their solicitor will ask for a Redemption Statement – showing how much they still owe on their mortgage.
- Prepare the completion statements. Conveyancers also need to create completion statements that break down all payments made and received.
On completion day:
- Make final checks. When completing on a house, your conveyancer will arrange the money transfer, along with the remainder of your mortgage deposit.
- Finalising completion. Your conveyancer will have already confirmed the balance, and you’ll need to ensure you have the funds ready them well before the big day enabling them to finalise the completion.
- Gaining ownership of the property. You’ll be informed of the completion, which means you’ll legally own the property and can collect the keys, usually from the Estate Agent.
- Register your ownership to the Land Registry. The final step to complete is updating the data held by the Land Registry, which your conveyancer will sort out for you. This can take a significant amount of time depending on the transaction type, so don’t expect the final paperwork to be with you for at least a couple of months.
Can you exchange and complete on the same day?
Exchanging and completing on the same day can sometimes be possible, however it is uncommon and can also be stressful.
Here are a few aspects to consider before deciding if it’s the right option for you:
- A housing chain makes it potentially a risky option, as more parts in the process mean more problems and if someone along the chain changes their mind at the very last minute there’s nothing you can do.
- Some lenders ask for a minimum period between exchange and completion, which could limit your options.
- You need to make sure you can transfer the funds to your solicitor the day before completion to avoid any last-minute transmission problems, but you will be doing this without the security of having a fixed and definite completion date.
New build completion process
Buying a new build property can seem more complicated, but an experienced conveyancer will make sure there’s a ‘long-stop date’, when the new build property will be ready for you to move in. If it’s not completed by then, you have the right to cancel the contract and get your deposit back. You also have the option to go on with your purchase, extending this date.
Find out more about buying a new build property here.
What happens if you don’t complete?
If you fail to complete a property transaction on the agreed date specified on the contract, because of issues with the transfer or funds or a change in personal circumstances, the completion will automatically roll over to the next working day. It is important to note, however that if the delay is your fault, you’ll be in breach of contract and get a financial penalty including contractual interest and potentially out of pocket expenses for the onward chain – including removals, overnight accommodation and furniture storage costs. You should never agree to a completion date unless you are 100% certain you will be able to meet it.
Completion day checklist
It can seem like a lot to think about, so here’s a completion day checklist to help you stay on top of the process.
- Plan ahead. Start organising your move once the day of completion is set. Start researching home removals services, agree dates and times and start packing. Remember to contact your new utility suppliers, arrange your bills and sort out your building’s insurance.
- Make sure you can be easily reached in case your conveyancer, estate agent or anyone else involved has queries or needs last minute documents.
- Have all your paperwork to hand. Make sure you have all the necessary documents relating to your house sale and all funds are ready to go.
- Collect your keys. You can pick up the keys to your new home from the estate agent or the seller as soon as the completion day money transfer has been confirmed.
Already planning your home move? Download our handy moving house checklist.
Disclaimer: The article above is only a rough guide to give you some idea of what is involved in an exchange of contracts.