When does money change hands?

GotToChange

Excuse my ignorance but can someone please tell me at which point the proceeds of the sale of a property are released to the vendor? If the buyer wants to "take possession" on 10th Dec, should the solicitor have the ££'s that day or before and when would he pass them on?
(I have only moved house twice and I didn't deal with all of this....sad, I know.)
This question is on behalf of a friend who is likely to get made a mug of if they are not careful - and we don't really know who else to ask.

goldbyron

If your friend is top of the chain he will receive the money on the day of completion - 10th it sounds like. We are completing on sale and purchase tomorrow. Our money is coming from the lenders to the sol today and then tomorrow morning will be transferred.

CloudCuckooLand

As stated, it should all happen electronically on the day of completion.

If in doubt, your friend should ask their solicitor.

GotToChange

Another question....

Completion? Possession? Same thing?

The plan is that that they move in on the 10th - could they already have completed?



Sorry that I don't already know these things/embarrassing......

GotToChange

CloudCuckooLand wrote: »

As stated, it should all happen electronically on the day of completion.
If in doubt, your friend should ask their solicitor.

It isn't a straightforward situation.

Friend is being made homeless by family home being sold - his contribution to saving the home from repo/business from bankruptcy is an amount from the proceeds of the sale. His Father may have been and continue to BS him, hence being unable to query with solicitor and wanting to have some knowledge and be prepared for the Father stalling.....(or outright lying).

maninthestreet

GotToChange wrote: »

It isn't a straightforward situation.

Friend is being made homeless by family home being sold - his contribution to saving the home from repo/business from bankruptcy is an amount from the proceeds of the sale. His Father may have been and continue to BS him, hence being unable to query with solicitor and wanting to have some knowledge and be prepared for the Father stalling.....(or outright lying).

So is their anything in the contract for the sale of the property that states your friend will receive a percentage of the proceeds from the said sale?? Or is this just a 'promise' made by the father??

GotToChange

maninthestreet wrote: »

So is their anything in the contract for the sale of the property that states your friend will receive a percentage of the proceeds from the said sale?? Or is this just a 'promise' made by the father??

It's the latter (I know I know) - backed up by a letter from his solicitor...

firstaspect

GotToChange wrote: »

Another question....

Completion? Possession? Same thing?

The plan is that that they move in on the 10th - could they already have completed?



Sorry that I don't already know these things/embarrassing......

This is how it works.

Exchange is a date where contacts are exchanged between solicitors and from this point the deal is legally binding (before this anyone could pull out). This is usually 2-4 weeks before Completion but it doesn't have to be.

Completion is the day where money is physically transfered to the relevant places from the solicitors (sellers, mortgage lenders etc). Once completion happens this is when keys are also handed over and you have to be out of the house that is being sold (vacant posession is part of the legal deal) and can move into the house you are buying.

Richard_Webster

This is how it works.

Exchange is a date where contacts are exchanged between solicitors and from this point the deal is legally binding (before this anyone could pull out). This is usually 2-4 weeks before Completion but it doesn't have to be.

Completion is the day where money is physically transfered to the relevant places from the solicitors (sellers, mortgage lenders etc). Once completion happens this is when keys are also handed over and you have to be out of the house that is being sold (vacant posession is part of the legal deal) and can move into the house you are buying.

And the seller's solicitors send the money to their clients the day of completion or the next working day depending on how busy they are. If solicitor has said he will send money to friend then I assume he will get his money at the same time as the seller does.