What happens on completion day

SR1

Hi, can anyone explain the process on moving day , in terms of :
What time do we have to vacate and when do we pick up our new keys.?

What happens to the money in terms of it being transferred to each solicitor and how long does it take?

Does the lender send funds to the solicitor prior to completion day?

Does the lender carry out further credit checks before releasing the funds?

Thanks in advance

Rapished

Hi you'll have exchange first, this is where the solictors/lenders all do there thing and you pop in and sign the paperwork, the money switches and flows quickly from the right people, then your all legal and its yours, and you'd need to have buildings insurance all up and running, once done its onto completetion,

You'll arrange a day/time to move and all going well the house will be empty etc for when you arrive, i'd suggest waiting and giving the new place the once over and a deep clean first, easier when its empty, when you go in for your signing of the contracts etc, you can run through this with the solicitor.

I_have_spoken

You're own solicitor should tell you, as they know your circumstances and details can be negotiated.

But generally, buyers would expect to get keys between noon and 3pm based on everyone having loaded the removal vans and travelled by then. Keys could be left with the EA who'll release them on the say-so of vendor's solicitor.

The solicitors will pass the money, which they'll have been holding in client accounts, up the chain. Your solicitor will tell you how many days before completion they need to have cleared funds in their client account to meet the agreed price + their fees + stamp duty (if payable).

Yorkie1

Exchange means you are committed to the purchase / sale, not that the property is yours at that point. Completion is when you become the owner.

As TYIHS says, your solicitor obtains the mortgage money and balance of any money from you a day or two before the completion date. It is usual to expect to have completed by about lunchtime or early afternoon on the day itself.

G_M

Garbled and inaccurate explanation!

Rapished wrote: »

Hi you'll have exchange first,usually (not always) this is where the solictors/lenders all do there thing err... very helpful! and you pop in and sign the paperwork, No. This will have been done before Exchange the money switches and flows quickly from the right people,No. The deposit (usually 10%) is passed, that is all then your all legal and its yours,Absolutely not! It is notyours till Completion and you'd need to have buildings insurance all up and running,usually, but it depends on the contract once done its onto completetion,

You'll arrange a day/time to move'Moving' and Completion are not the same. Completion is when you become theowner. You may choose to move in days, weeks or months later! and all going well the house will be empty etc for when you arrive, i'd suggest waiting and giving the new place the once over and a deep clean first, easier when its empty, when you go in for your signing of the contracts etc, you can run through this with the solicitor.

As a general rule, on Completion day, and in theory, the seller vacates by midday, money changes hands, keys are exchanged, and youmove in after midday.

In reality it is more complex:

* solictor for buyer at bottom of chain passes purchase money to seller's solicitor some timein the AM.
* Once confirmation it has arrived:
a) seller releases keys by pre-arranged method(often via estate agent but might be the neighbour...) and
b) seller's solicitor sends money on to next seller in the chain who

a) releases keys and
b) sends money on to next.......

and so on. So the person at top of the chain may not receive money till 4? 5 PM?, and his buyer will be sitting outside the house all day, with no keys, and with a removal van of bored beefy guys......

If one solicitor is busy, it all gets held up. If a bank transfer gets delayed, it all gets held up.

And then there's the pratt who ignored the "leave by midday" advice and didn't start packing till 10.00 am that morning.

And the neighbour who offerred to keep the keys but then went shopping.

And the guy who was topping up his mortgage with savings, but the savings were in a 3 month notice bank account....

Expect it to be stressfull!
*

SR1

Thanks for the replies, yes exchanged literally a few minutes before five on Friday and completing next Friday, so there could be a few hours where we are homeless ?

BazzaDP

In regards the money the buyer typically has to transfer any money they hold to their solicitor in advance so they have cleared funds ready to transfer to the seller.

On completion day, the mortgage company transfers any mortgage to the buyer's solicitor and this is combined with any deposit from the buyer, fees and costs (e.g. stamp duty) are removed and paid to the appropriate parties and then buyer's solicitor sends the remaining funds on to the seller's solicitor. The seller's solicitor then removes their fees, any costs and transfers the remainder to the sellers account. It may or may not arrive in the seller's bank account on the same day depending on the banks but usually it does. At this point the seller gets a phone call from their solicitor and or the estate agents who say "It's completed, are you happy to release the keys?" and then the buyer can collect the keys from the estate agents and move in!

Contracts are usually (but not always) signed and exchanged in advance as there's enough to do on completion day but certain costs and fees cannot be calculated accurately (e.g. outstanding mortgage for the seller), until completion day as it is open to change.

Obviously there's a lot that an go wrong, particularly if the seller is not moving out until completion day or if there is a chain so be prepared to be flexible and don't assume you'll be able to get in first thing or even by the agreed time. However of the two sales I've been involved in personally it all went fine.

BazzaDP

SR1 wrote: »

Thanks for the replies, yes exchanged literally a few minutes before five on Friday and completing next Friday, so there could be a few hours where we are homeless ?

The time you exchange has nothing to do with when you complete. It's not like you complete exactly 7 days later at the same time.

Yes potentially (actually quite likely!) you will be homeless for a few hours. It all depends on when each buyer and seller moves out and moves in. Some people won't want to take the day off work so might not want to move in, until the evening for example. As I said above, don't make any concrete plans for completion day as there's a high chance there will be delays!

Dan-Dan

This seems a good thread to ask , as its running already , hope ok OP...

My vendor called me last night to talk about exchange and completetion..

He said exhange is always 4 days before , but i think he meant at least 4 days before , i know it can be same day but anyway.....he was a lovely guy , and sort of railroaded us into aiming to complete on a friday (the friday before the august bank holiday) and him and his removal friends with vans , would be out of our hair , and the house by saturday at Noon)....

I am a FTB so it took me a while to realise , i need to complete on the same day i sell because i cant buy without selling , so i actually need to go back to him today and say we need to move in on he day we complete , not the day after , otherwise , two adults , two kids and two dogs are effectivly homeless for the night...is that about right ?

I did read something somewhere about dont complete on a friday in case it goes wrong..? can anyone elaborate ?

arbrighton

No, if you complete on Friday, they vacate on Friday and hand you keys. It's a mutual agreement anyway and as you are in a chain, your sale needs to be coordinated too

SR1

I get a letter saying I need to be out by 1pm, he can't stay till any longer after monies have been received. Cheeky vendor. And u don't have to complete four days after,