completion date and exchange date?

1886travel

I found this on the internet:
The main difference between exchange and completion is that 'exchange' is an exchange of contracts, which makes the matter legally binding between the parties, whereas 'completion' is the date the parties physically move and transfer legal ownership of the property.



I thought it should exchange contract on your completion date? 

user1977

Exchange date is when you enter into a binding contract to buy (or sell) a property. Completion date is when the money and keys actually get handed over.

Might help if you explained why you're asking?

[Deleted User]

You exchange contracts on your exchange date. 

You complete (ie move into the home you've just bought and get out of the one you've sold) on your completion date.

You've only exchange on your completion date if you're exchanging and completing on the same day.

Zerforax

In terms of timing, on some occasions you can have exchange and completion on the same date (usually if cash purchase) but typically would be at least 1 week apart (usually where mortgage needs to be advanced by bank). Sometimes a party may request more time (e.g. 2 weeks) as need more time to pack the house. If you buy a new build, you would exchange very early in the process (to lock you in) but completion would be when the house is finished and keys handed over.

kingstreet

Exchanging contracts sets the completion date, unless buying a newbuild then completion is "on notice" usually ten days after notice is served by the builder's solicitor.

hpsauce86

You exchange contracts and pay your deposit on the date of exchange. You’ll also agree a completion date, which is when you get your keys and house is yours. 

Ideally you should have a few days in between exchange and completion (we have between 1-2 weeks usually), to ensure the lender gets the money across in time of the completion date, though lots of people exchange and complete in the same day. Personally I wouldn’t risk it because if completion date is missed because money hasn’t been received then you are liable. 

eddddy

hpsauce86 said:

Ideally you should have a few days in between exchange and completion (we have between 1-2 weeks usually), to ensure the lender gets the money across in time of the completion date, though lots of people exchange and complete in the same day. Personally I wouldn’t risk it because if completion date is missed because money hasn’t been received then you are liable. 

If I'm reading your comment about exchanging and completing on the same day correctly - I think you've got that wrong. It's the opposite.

If, for example, you plan to exchange and complete this Friday - then Friday arrives and the money hasn't been received - you don't exchange and complete. So you're not liable for anything.


(During early COVID times people were specifically exchanging and completing on the same day - partly because it removed risks around the money not being received when expected.)

canaldumidi

Usually Exchange of Contracts happens in advance of the Completion date.

20+years ago there was usually a 4 week gap.

More recently this reduced to 1 or 2 weeks.

During the pandemic, same day Exchange and Competion became more common.

Most people prefer a gap as that gives time to plan and arrange the house move.