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Completion day- how does the money work?
SR1
Posts: 147 Forumite
Hi I am hoping to move and am part of a chain,
FTP-my buyer- me - my vendor.
Can u tell me what happens on completion day, how does the money change hands in one day?
Also does the bottom of the chain have to exchange first? All the money for my completion is tied up in my sale.
FTP-my buyer- me - my vendor.
Can u tell me what happens on completion day, how does the money change hands in one day?
Also does the bottom of the chain have to exchange first? All the money for my completion is tied up in my sale.
0
Comments
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the money is unlikely to be transferred on the actual day. 'completion' really only means that the funds have been successfully received and the keys can then be handed over.
Completion date for me with nothing but the sales rep (new build) contacting me to confirm all went through fine and arrange delivery of the keys (FTB)
the money side was done a few days before.
not sure about the chain as i was a ftbAn opinion is just that..... An opinion0 -
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Thrugelmir wrote: »The solicitors wire the funds by same day transfer to each other.
Not quite accurate there. It takes too long to send a CHAPS payment for them all to proceed sequentially on the same day. Nor is it necessary.
The chain is "FTP-my buyer- me - my vendor" and usually the prices increase up the chain. Suppose the prices are £100k, £150k, and £200k. Then, ignoring deposits to keep the maths simple, 'FTP', 'my buyer', and 'me' each pay their money to 'my vendor'. So, each one only has to make a single CHAPS transfer, and they don't have to wait for someone else's money to arrive before doing so.
When 'my vendor' has received £100k from FTP and £50k each from 'my buyer' and 'me', everybody has paid/been paid the right amount, and the keys are handed over.
It's obviously essential that there is trust in the system, which is why everybody needs to have a solicitor/conveyancer handling their money. 'My vendor's solicitor gives an undertaking to return the money if the various sales don't complete, so the people lower down the chain are happy to pay up prior to completion.No reliance should be placed on the above! Absolutely none, do you hear?0
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