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What Happened to a Completion Day
2021-12-16

What is a completion day?

  On a completion day, the buying and selling process would be finalized by transferring the ownership of the property from the seller to the buyer. Usually such a completion of a house transaction is done by the solicitors representing the seller and buyer. After some financial documents being checked and completion statement being exchanged, the buyer would get the key to the house and the seller would move out.

When will a completion day happen?

  After the conveyancing solicitors on both sides made the sale contracts signed, the date of the completion day would be decided. The completion day happens usually between 7 and 28 days after the exchange of contracts.

What happened to a completion day?

  In most cases, the solicitors on both sides will Provide guidance and advice throughout the transaction and deal with the exchange and transfer. Anyway as a seller or buyer, you’d better know yourself the general process of a completion day.

  (1)Check the mortgage conditions. The seller’s solicitor is responsible for checking the advance of mortgage funds and ensure with the buyer side the timely transfer of deposit and later mortgage funds.

  (2)Make a completion statement. Both sides should agree on the completion statement and after confirm the document, the mortgage lender would be noticed to transfer the money to the seller.

  (3)Hand over the key. After the completion statement is signed, the key would be handed over to the buyer by the estate agent.

Is it possible to exchange and complete on the same day?

  It’s technically can be done but will be very stressful. Please imagine you should negotiate the purchase price, exchange the contracts, calculate the bills and make the completion statement in one day. Things will easily go wrong in this way. It’s advisable to leave one week between exchange and complete.

Some problems that may rise on the completion day include:

  (1)Late payment ofpurchase funds. Most people buy a property through a mortgage from the lender, and if the mortgage lender fails to lease the mortgage funds on time, it may lead to the delay of transaction.

  (2)Missing thebank deadline. Since the bank will take off in 4 p.m., the funds need to be transferred to the bank account of the seller's solicit before 4 p.m. in order to complete the transaction. If the money doesn't arrive by 4 p.m., the transaction will need to delay until the next working

  (3)Omission of documents. Any omission of documents will result in the failure of transaction. You have to prepare all documents in advance and check them before the completion day coming.

  (4)Delay in the property chain. Any link in the property chain have an impact on the transaction. Especially when you buy a leasehold property, in which case you don’t own the land it stands on, but rent it from a freeholder, who charges ground rent, the links are more complicated and more parties are involved.

Preparations for the completion day

  (1)Contact with your solicitor. You should be well informed with all documents from your solicitor, and raise enquiries if there is a question. For example, if there is a miscalculated budget you find out, you have to question your solicitor, or the extra costs will bother you in the future.

  (2)Have the paperwork prepared. All the paperwork need to be well collected in a file bag. You can also scan the documents into a digital versions. When an emergent situation comes, the digital version may help.

  (3)Make sure the purchase funds available. No matter your own fund and mortgage, you need to make sure they can be available on the completion day. Check with the mortgage lend the day before the completion day via your solicitor if necessary.

What is a completion statement?

  A completion statement to be sent by the seller's conveyancer to the buyer's conveyancer on the sale of freehold or leasehold property. It sets out the sums of money that need to be paid in order to finalize the sale, including but not limited to the purchase price of the property, the deposit amount, mortgage advance, disbursement costs, cashback mortgage payment, land registry fees, solicitors fee and stamp tax.

Who provides the completion statement?

  Basically the completion statement is made by the conveyancer and then sent to the buyer. Your solicitor may send you several drafts before the final version is exchanged with the seller’s solicitor. In drafting the completion statement, the solicitor would negotiate with the back for your mortgage.

When do you receive the completion statement?

  The completion statement is sent to you after the the exchange of contracts and before the completion day. When receiving it, you have to check it carefully and raise any enquiries to your solicitor about the bills listed in the statement.