What really happens on Exchange day and same about Completion day..?

sujsuj

When buyers and sellers sign bunch of forms TR1, Purchase Contract , Sale Contract  etc to their solicitor what exactly happens on exchange day..? solicitors talk each other and they send signed docs by email/fax..? How exactly things are done these days on the ground. What point its clear exchange is done..? Also who in the chain is responsible to co-ordinate between Solicitors/EA to get this over the line on Exchange day? EA at TOP or bottom who takes lead role..? What role Buyer/seller takes on that day..?
Similarly on completion day what exactly happens between Solicitors..?  Very curious to know the details. thanks.

eddddy

Estate Agents aren't involved in exchange or completion - except that sometimes the EA will hand over the keys to the buyer after completion.

Typically, your solicitor will phone you on the day of exchange, and check that you want to go ahead.

Then solicitors would exchange contracts by telephone. There's a special formula (or process) that solicitors follow, to make sure that all contracts are exchanged at the same time.

Similarly, your solicitor will ensure that on completion day, your sale and purchase both happen at the same time (so that there's no risk that you're left owning 2 properties or no properties).


Here are brief details of how "exchange by telephone" works:   https://www.lawsociety.org.uk/en/topics/property/formulae-for-exchanging-contracts-by-telephone

sujsuj

Interesting. Thanks. But for co-ordination  of this process Top end EA or Bottom end EA takes lead role ..? Or No role for EA? Solicitors supposed to call client and confirm completion date before exchange??

loubel

The estate agent doesn't get involved in exchange. Once all parties in the chain are ready to go and a completion date has been agreed the solicitors do the exchange. If there is a chain the exchange usually (but not always) starts at the bottom (the person buying without a related sale).

Alter_ego

The other thing that happens at exchange is deposits are paid.
 Insurance on the property you are buying should be arranged.

Completion - the sales are completed, money paid, keys handed over.

TBagpuss

As others have said, the work, and the coordination, is all done between the solicitors/conveyancers, not the estate agents.

Your own solicitors will liaise with you in advance about dates for completion, and will normally contact you just before exchange to check you are happy to go ahead. 

On exchange  deposits are paid and you become liable fo insurance on the place you are buying. 
on completion, the balance of money has to be paid over. Once the solicitors for the property you are buying receive the funds from your solicitor, they will contact the estate agents and tell them they can release the keys to you. 

This can mean that if you are in a long chain, you may not get your keys till quite late in the day, as each link in the chain will wait to get the money before being able to release it to the next seller. (And in practice, if you are lucky and get your keys early, you may still rock up to you new home and find the sellers are still loading their removal van...) 

Solicitors do the actual exchange and completion by phone then the various documents are sorted out. Solicitors use what are called undertakings, which are legally enforceable promises, to allow everything to happen simultaneously, e.g. the sellers solicitors undertake that they will ensure that the seller's mortgage lender releases their charge over the house, your solicitor will have undertaken to your lender to register their mortgage against the property, solicitors will have undertaken to each other to either send paperwork or to hold it (and not register the change of ownership) until completion takes place, and so on. 

From your perspective, you need to ensure that you have all your packing done and can be out of your house promptly so it's vacant for the buyers, and make sure you are clear about where and from whom you are getting your keys once your purchase completes. 

sujsuj

Great . Thanks. I experienced this last week. All gone well and completion & keys done @ 1: 45. Thanks a lot for the forum.

shakAFC

I’m exchanging and completing on Friday ( or Thursday) fingers crossed. Not chain either so as soon as solicitors receive the funds we are ready!