Exchange & Completion on Same Day

ib0211

We're keen to get to completion ASAP, and as we near the point I asked the OH to enquire with the solicitor about exchanging and completing on the same day. We've had the contracts through to sign and get back to the solicitor.

The OH (who's had a property before and sold it, and we're currently renting) told me that that's not the way it works and basically we have to send the contracts back and then a date for completion is set. I told them to do a Google and they'd soon see that it it possible.

Anyway they've asked the solicitor and the solicitor's refusing to do both the same day. Fair do's - but I know it's possible for both to be done the same day (or am I mistaken?). I know that the solicitor's refusing so that's that - but under what circumstances do exchange and completion happen on the same day, and what circumstances do they not?

The vendor wants to complete ASAP, as do we - but the solicitor seems to be the sticking point.

ib0211

Oh, I meant to add that the property we're buying is currently vacant so there's no chain.

Doozergirl

You can exchange and complete on the same day. The solicitor often needs a bit of notice so that they can ensure mortgage funds will be in place on time.

It isn't done usually because there is a risk of being 'gazundered' - ie. when you're packed up and ready to move, the buyer suddenly drops the price they are willing to pay and basically holds a vendor to ransom.

My sister in law was gazundered to the tune of £15k! It's less likely with an empty property of course because it's not such a desperate situation.

We have exchanged and completed on the same day. It was a bit stressful but we trusted each other - we were buying each other's houses!

Georgie4

There is absolutely no legal reason why you can't do both on the same day but it is not really the norm as it could be very stressful. At exchange though you can stipulate that you complete 7 days later and as long as both of you agree then thats fine and will give you time to get organised

ib0211

Solicitor seems to want to drag things out as long as possible which is baffling me.

They have basically said that the process from here is:

- We send back the contracts.
- Contracts are exchanged.
- They issue an invoice for the deposit.
- We send them the deposit.
- The deposit clears.
- A date for completion is set.
- Completion happens on set date.

This seems wrong to me - I thought that we had to lodge our deposit with the solicitor before contracts are exchanged? I was expecting to send the deposit back at the same time as the contracts - then exchange would happen followed by completion?

They've also advised against completing mid-month as we'd then have a month and a half's mortgage to pay for the first payment. This doesn't bother me however as ideally we were hoping to be able to complete 1st May (this is now unrealistic) - so we would have had May's mortgage payment and then June's anyway. To complete half way through May will only give us half of May's mortgage plus June's payment anyway (eg 1.5 months instead of 2 had we completed when we'd wanted to).

The other thing that's baffled me is the fact that the solicitor's have told us that the date of completion will be negotiated AFTER exchange - not AT exchange - and the completion date will be decided for when the vendor's solicitor wants it and when they want it - not when the vendor wants it and we want it. Again this seems wrong. I understand that the solicitor's have to be available, and they have to make sure funds, insurance, all other paperwork, etc is in place - but surely the vendor and ourselves shouldn't be totally discounted in this process as our solicitors are making out?

We received the contracts on Friday - and by then the vendor had actually handed the keys to the EA last week ready for completion so we're led to believe they've done everything they need to.

In theory once we've sent back the contracts and the deposit has been cleared with the solicitor, I don't see what's holding everything up - and why our solicitors seem keen to do so (unless they're very busy at the moment?). It's just frustrating - and it's as if they're trying to push us for a start of June completion when both the vendor and ourselves are ready to move ASAP.

Georgie4

YOU tell your solicitor when you want to complete and yes the deposit has to be paid at exchange not after !! If the other party wants to move quickly as well then you both need to go to your solicitors and say the date you want to agree on. A solicitor is there to advise you and warn you of possible pit falls such as telling you you would have to pay 6 weeks mortgage if you complete mid month but after they have told you this it is up to you to decide what you want to do and it is their obligation for them to do what you instruct them to do ultimately

hostiegirl

We are exchanging and completing on same day I would NOT recommend it!, it is too stressful our mortgage funds and our buyers had to be ordered on Friday as need 5 working days so we can complete this Friday. My nerves are all over the place. I would not wish this situation on anybody.

Doozergirl

You need a 10% deposit ready for exchange - your solicitor can't exchange without it and they won't be paying it out of their pocket! If you are paying more than 10% deposit in total then that needs to be in place before completion. If you exchange and complete on the same day, then you simply send the whole lot ready for that day. Yes you need to give about a week's notice of the fact you want to exchange and complete quickly.

Ask your solicitor- how many items they waiting on for exchange. Ask them to list them for you.

Get your vendors to ask their solicitors - what are they waiting on before being ready for exchange. Ask them to list each item.

Then you have to work through whatever it is, and see if between you and the vendor you can push things along.

If there is nothing then there is no reason why you can't exchange. It's complete nonsense that completion happens according to the solicitors - the day is decided by you and your vendor. Sometimes with exchange and completion it ends up going over to the next day because they do both have to be available along with funds in place etc.

I'd not accept any more rubbish personally. Try to avoid exchange and completion same day but even if it's one day then the next, it will be better time for the admin to be done.

If you are pretty much ready then a June completion sounds absurd

Richard_Webster

Doozergirl wrote: »

You need a 10% deposit ready for exchange - your solicitor can't exchange without it and they won't be paying it out of their pocket! If you are paying more than 10% deposit in total then that needs to be in place before completion. If you exchange and complete on the same day, then you simply send the whole lot ready for that day. Yes you need to give about a week's notice of the fact you want to exchange and complete quickly.

Ask your solicitor- how many items they waiting on for exchange. Ask them to list them for you.

Get your vendors to ask their solicitors - what are they waiting on before being ready for exchange. Ask them to list each item.

Then you have to work through whatever it is, and see if between you and the vendor you can push things along.

If there is nothing then there is no reason why you can't exchange. It's complete nonsense that completion happens according to the solicitors - the day is decided by you and your vendor. Sometimes with exchange and completion it ends up going over to the next day because they do both have to be available along with funds in place etc.

I'd not accept any more rubbish personally. Try to avoid exchange and completion same day but even if it's one day then the next, it will be better time for the admin to be done.

If you are pretty much ready then a June completion sounds absurd

I agree.

If you get all the money he needs to your solicitor and he has time to request the mortgage money from your lender (usually takes about a week) then there's no reason why you can't move quickly. If the solicitor has the money and the signed contract then he can exchange with completion set for a week later. No real need to exchange and complete on the same day in your situation because of the notice required to get mortgage funds.

Usually exchange and completion on the same day takes place for one of two reasons:

1. Someone in chain is getting 100% mortgage and has nothing to put down so those above him feel exposed in that they could be sued for the balance of 10% of the price if they have exchanged with a tiny deposit and something goes wrong and the person at the bottom with 100% mortgage disappears and doesn't complete. Unlikely, but possible but with 100% not available, not likely to happen at the moment.

2. Everyone in chain is geared up for a particualr date, and solicitors have requested the mortgage funds ready for it, but haven't exchanged because there is some final point that needs to be checked which it is thought unlikely to be a problem, but until it is is sorted they can't exchange. When it is sorted exchange take place, maybe on the day or 1-2 days before. A variation on this is that a solicitor is waiting for his client's deposit funds to clear so can't actually exchange until they are cleared but everyone expects it ot be OK on the day.

Disadvantage of doing this is that inevitably some people will have to make commitments as to removals etc before they are sure they are moving.

If there is any length of chain I always warn my clients that we probably will be able to complete on X date but if it gets very close and we haven't exchanged someone else may get cold feet and not want to incur costs for a late cancelling their removal van and will cry off at the last minute, with further costs and hassle for everyone else. If my clients are happy to take that risk then we go for completion on the date they want and exchange as soon as we can.

ib0211

Thanks all for the advice. It appears it's not best to exchange/complete on the same day then.

I think our course of action is to:
- Get the contract back to the client complete with bankers draft with the deposit.
- Ask the solicitor if anything's outstanding that's stopping exchange - and get a list if there is anything.
- Instruct the solicitor to exchange ASAP assuming they have the cleared deposit and nothing's outstanding.
- Instruct the solicitor that we want to complete within 7 days of exchange subject to the vendor being okay with this (which we are led to believe they are fine with and want to complete ASAP).

Richard_Webster

ib0211 wrote: »

Thanks all for the advice. It appears it's not best to exchange/complete on the same day then.

I think our course of action is to:
- Get the contract back to the client complete with bankers draft with the deposit.
- Ask the solicitor if anything's outstanding that's stopping exchange - and get a list if there is anything.
- Instruct the solicitor to exchange ASAP assuming they have the cleared deposit and nothing's outstanding.
- Instruct the solicitor that we want to complete within 7 days of exchange subject to the vendor being okay with this (which we are led to believe they are fine with and want to complete ASAP).

That's right!