What Happens Between Exchange and Completion?

In Summary…
Once contracts are exchanged, the sale is legally binding, and the completion date is fixed. The gap between exchange and completion is usually one to four weeks. During this time, the solicitors arrange the money, your mortgage is prepared for repayment, and you get ready to move. Then, on completion day, the funds are transferred, you hand over the keys, and the home officially belongs to your buyer.

Exchange: the point of no return

You’ve found your buyer, the surveys are done, and the solicitors have worked through the paperwork. Then comes the moment every seller waits for: exchange of contracts. But what actually happens next, and what do you need to do before you hand over the keys?

Here at Rowe & Co, we guide sellers across Hampshire through this stage every week – it’s safe to say that we’re very familiar with what happens between exchange and completion.

In a nutshell, exchange is when your solicitor and your buyer’s solicitor swap signed contracts. From this moment, you’re both legally committed. Your buyer pays a deposit, usually 10% of the purchase price, and the completion date is written into the contract.

Before exchange, either side can walk away without penalty. After exchange, pulling out has serious financial consequences. That’s why exchange is the moment most sellers finally breathe a sigh of relief.

How long is it between exchange and completion?

There’s no fixed rule, but one to four weeks is typical. The date is agreed between you, your buyer and anyone else in the chain before exchange takes place, so everyone knows exactly when moving day will be.

Some sales exchange and complete on the same day. This can work for chain-free sales, but it leaves little room if anything goes wrong, and you can’t book removals with certainty until contracts are exchanged. For most sellers, a gap of a week or two gives the right balance between speed and peace of mind.

If you’re in a chain, everyone in it will normally complete on the same day. Your agent will help coordinate the dates so the whole chain moves together.

What happens behind the scenes

While you’re packing boxes, the solicitors are busy getting everything ready for completion day.

Your solicitor will:

• Ask your mortgage lender for a redemption statement, showing exactly how much is needed to pay off your mortgage on completion day
• Prepare a completion statement, showing the money coming in from the sale and what’s going out, including your mortgage, estate agent fees and legal fees
• Make sure the transfer deed is signed, if it hasn’t been already

Your buyer’s solicitor will:

• Request the mortgage funds from your buyer’s lender, so they’re ready to send on completion day
• Carry out final checks, including a Land Registry search and a bankruptcy search on the buyer
• Collect any remaining money from the buyer, including the balance of the price and Stamp Duty

You won’t need to be involved in most of this, but reply quickly if your solicitor asks you for anything. Small delays at this stage can have a knock-on effect on the whole chain.

Your to-do list before completion day

Now the date is fixed, it’s time to get organised. Here’s what we recommend sellers tick off:

• Book your removals. Now you have a confirmed date, you can book with confidence. Good removal firms get busy, especially on Fridays and at month end, so book as soon as you can.
• Keep your buildings insurance in place. Don’t cancel it until completion has taken place. Your buyer will usually arrange their own cover from exchange.
• Tell your utility providers. Let your gas, electricity, water and broadband suppliers know your moving date, and take meter readings on the day.
• Update your council tax. Tell the council when you’re leaving so you’re only billed up to completion.
• Redirect your post. Royal Mail’s redirection service catches anything that slips through the net.
• Check what’s staying and what’s going. Anything listed on your fixtures and fittings form must be left behind, so make sure your removal team knows.
• Gather your keys and manuals. Collect every set of keys, plus alarm codes, appliance manuals and guarantees, ready to hand over.

It’s also a kind touch to leave the home clean and clear. It’s what you’d want on your own moving day, after all!

What happens on completion day?

Completion day is when the money moves and the home officially changes hands. Here’s how it usually runs:

1. Your buyer’s solicitor sends the funds to your solicitor by bank transfer.
2. Your solicitor confirms the money has arrived, pays off your mortgage and lets us know the sale has completed.
3. We release the keys to your buyer, and the home is officially theirs.
4. Your solicitor pays the estate agent and legal fees and sends the remaining balance to you.

Your contract will set a time by which completion should happen, often early afternoon. In reality, timings depend on how quickly funds move through the chain, so it’s wise to be packed up and out by late morning. If you’re buying too, your solicitor will use the money from your sale to complete on your new home the same day.

After completion, your buyer’s solicitor registers the change of ownership with HM Land Registry and files their Stamp Duty return. There’s nothing more you need to do!

What if something goes wrong?

Problems after exchange are rare, but it helps to know where you stand.

If completion is delayed, money can occasionally move slowly through a chain, meaning completion happens later in the day than planned. This is frustrating but usually resolves itself within hours. If a delay runs over the agreed date, the contract normally allows the side that’s waiting to claim interest on the money owed.

If your buyer fails to complete, your solicitor can serve a formal notice to complete, giving the buyer a set period, usually ten working days, to go ahead. If they still don’t, you can normally keep their deposit and may be able to claim further losses.

The same applies in reverse, which is why it’s so important you’re ready to move out on the agreed date. If you’re worried about anything, speak to your solicitor straight away.

Ready to take the next step?

Exchange and completion are the final steps in a much bigger journey. Book a free valuation with our team to find out what your home could be worth.

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This article is for general information only and applies to property sales in England and Wales. It isn’t legal or financial advice, and every sale is different. Always speak to your solicitor or conveyancer about your own situation.