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  • FIRST POST
    • neilio
    • By neilio 15th Mar 17, 4:55 PM
    • 178Posts
    • 89Thanks
    neilio
    Simultaneous exchange and completion - why?
    • #1
    • 15th Mar 17, 4:55 PM
    Simultaneous exchange and completion - why? 15th Mar 17 at 4:55 PM
    Iím curious to know why people want simultaneous exchange and completion dates. When I sold my flat to a FTB last year, they were adamant that they wanted simultaneous exchange and completion day because, for some reason they never explained to me, that was their only option and any longer was unacceptable to them. I needed two weeks (pretty standard, right?), but the buyer was incredibly belligerent and did not understand that I couldn't take a risk of agreeing to such a thing. I politely asked the buyer several times to explain his position to me but he never did or was able to. In the end it was a 4-day completion and he thought he was doing me a favour!

    Oddly, when I have told this story to people ever since, I get a mix of reactions. Generally older people who have bought or sold before think itís outrageous and massively high risk for someone to want simultaneous exchange and completion dates. On the other hand, several younger FTBs Iíve spoken to had an expectation when they bought that they could have simultaneous exchange and completion dates and found it incredibly stressful to wait a few weeks between.

    I donít understand it and Iím genuinely curious. Where is this view of simultaneous exchange and completion dates being a good thing coming from? What is the benefit, if any, and to who?
Page 2
    • Red-Squirrel
    • By Red-Squirrel 16th Mar 17, 10:44 AM
    • 597 Posts
    • 1,037 Thanks
    Red-Squirrel
    I had simultaneous exchange/completion when I bought repossessions. It made sense for those purchases, and I also wasn't selling anything.

    For my house purchase in 2015 though the lender insisted on at least 5 working days between exchange and completion so it wouldn't have been an option however much the buyer of my place might have stamped their feet!

    I suppose some might be scared of anything going wrong with the house inbetween, or are just impatient!
    • cloo
    • By cloo 16th Mar 17, 10:53 AM
    • 804 Posts
    • 565 Thanks
    cloo
    I suspect it's misunderstanding/over caution, although I'm not sure it actually makes a difference to risk whether it's immediate or not - in the very rare cases when a buyer exchanges but then can't pay up I don't see how it could make any difference whether they can't pay up on the same day as exchange or if they can't several weeks later.


    My brother's brother-in-law did have the nightmare situation of pipes bursting and making the house uninhabitable between exchange and completion, but that is also a rare bit of bad luck, and at least the insurance provision meant they were covered and alternative accommodation paid for over the six months or so it took to make the house liveable.
    • saajan_12
    • By saajan_12 16th Mar 17, 11:11 AM
    • 184 Posts
    • 104 Thanks
    saajan_12
    I suspect it's misunderstanding/over caution, although I'm not sure it actually makes a difference to risk whether it's immediate or not - in the very rare cases when a buyer exchanges but then can't pay up I don't see how it could make any difference whether they can't pay up on the same day as exchange or if they can't several weeks later.
    Originally posted by cloo
    Assuming at the point of exchange, you're sure you will have the funds in place, there's less likelyhood of that changing within the same day vs over a month.. say if the lender withdrew the offer / lost job / unable to pull funds from another investment etc.
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