Exchange and completion on the same day

bob_the_dinosaur

Hi all, hoping someone can help.
Our chain is (mericifully) very short, there is us (buying and selling), our buyer (ftb) and our seller (vacant property).
We spoke to our solicitor on Thursday and was told exchange and completion is on the same day at the minute and thats just how things are.  We have been asked if we have any dates we want to move and have said asap, our buyer has said the same, waiting on confirmation from the seller that the same applies.
I'm just trying to understand how it all works in practice before we have our next conversation with our solicitor.  
Has anyone done it under the current conditions?  What are the pitfalls and how will we/our solicitor overcome them?

LoveSauce

The whole point on same-day exchange/completion is to avoid pitfalls. Maybe the only pitfall is you can't change your mind after that day! I guess the reason people normally don't do it the same day is to reduce paperwork for solicitors and for buyers/seller to sort themselves out (in terms of preperations/movers/job time off, etc)

I'm sure there are other things i can't think of.

EDIT: So the sellers/buyers can pull out ON THE DAY you have scheduled to exchange complete. And, im guessing, by then you have packed everything and taken time off work, and who knows what else! Could be an  expensive inconvenience!

eddddy

The major drawback is that you can't be 100% sure if/when exchange and completion will happen... until they actually happen.

• Worst case scenario is that you've packed all your stuff in the removal van,
• You're sitting waiting for the call from your solicitor to say exchange/completion has happened, so that you can move into the new property
• The call never comes, so you have to unpack some/all of your stuff back into your old house

Depending on what the problem is, it may be a case of trying again on the next day.

Or even worse, on the day, the buyer falls ill, has a death in the family, has their mortgage withdrawn, loses their job, or changes their mind for some other reason - and decide they don't want to move at all. So you need to unpack the removal van, move back into your old house,  and wait until you can find another buyer.

staffie1

I’m selling and moving into a rental temporarily.
The plan is to exchange as early as possible in the morning, then sign tenancy agreement electronically, then complete. 

At least if the exchange doesn’t take place, I don’t have 6 months rent to pay unnecessarily.

The biggest risk then is that removals have packed stuff into the van and it has to come off again, and to pay them of course. That is if I can find a removals firm willing to work within the guidelines.
It’s a case of getting estate agent, letting agents and both solicitors aligned with the plan and making it absolutely clear what your plan is.

m0bov

Your sol works for you, YOU decide when you exchange and complete, the have no right to dictate. In fact they should advise you against it. Never do it on the same day unless your a FTB or end of chain. You could end up homeless and have more to loose.

Mutton_Geoff

bob_the_dinosaur said:&

We spoke to our solicitor on Thursday and was told exchange and completion is on the same day at the minute and thats just how things are

I doubt it's "just how things are". You are the paying client, I would instruct your solicitor to work at the pace you wish. A period of time between exchange and completion is beneficial for many reasons.

Tiglet2

Normally a simultaneous exchange and completion is not recommended - too much stress on the day with uncertainty of whether it will actually happen.

During this pandemic/lockdown, the Solicitors Regulation Authority are recommending simultaneous exchange and completions, so that the risk of someone being in breach of the contract (and therefore one party being liable for penalties) is minimised.  If you exchange a week prior to completion then, although you will have that time to pack and prepare, you also run the risk of the lockdown becoming more restrictive, someone in the chain falling ill, dying, unable to access their finances/savings in time, lenders not transferring funds in time, removal companies having to renege on contracts because of more severe restrictions being put in place. 

If you agree to the exchange and complete on the same day, then no-one will be in breach of contract because the "exchange" won't happen until everyone is able to complete.  

During this pendemic, if you want your transaction to go ahead, then a simultaneous exchange and completion is the best way of minimising being liable for any penalties/loss of deposit for the defaulting party if something goes wrong on the day.

Thrugelmir

Mutton_Geoff said:

bob_the_dinosaur said:&

We spoke to our solicitor on Thursday and was told exchange and completion is on the same day at the minute and thats just how things are

I doubt it's "just how things are". You are the paying client, I would instruct your solicitor to work at the pace you wish. A period of time between exchange and completion is beneficial for many reasons.

Solicitor works for the lender also. The paying client just happens to be covering their costs as well.