Getting from exchange of contracts to completion on your house purchase is the final hurdle. During this time, your deposit is paid and legally binding contracts are exchanged, before you get the keys on completion day. The gap between exchange and completion is typically one to two weeks, but can be longer.
Here’s what happens during this crucial period and how to make sure everything goes smoothly.
What does exchange of contracts mean in property transactions?
Exchange of contracts happens when both the buyer and seller’s solicitors swap signed contracts and the buyer pays their deposit (usually 10% but can be more or less depending on the mortgage lender’s requirements).
At this point, the sale becomes legally binding. That means neither party can back out without facing penalties. The buyer’s deposit acts as security, and they stand to lose it if they pull out after exchange.
What is completion in property transactions?
Completion is the day when the keys become available for your new home. The remaining money is transferred from the buyer’s solicitor to the seller’s solicitor, and ownership of the property legally passes to the buyer. Once the seller’s solicitor confirms receipt of funds, they authorise release of the keys, usually through the estate agent.
Typical timeline between exchange and completion
The normal gap between exchange and completion ranges from one to four weeks, depending on your situation. There are several factors that might affect your timeline.
Average timeline and common variations
Most house purchases complete within two weeks of exchange. This provides enough time to sort out money transfers and moving arrangements. Some transactions take longer, particularly if there are complex mortgage arrangements or legal issues to resolve.
Factors influencing the exchange-to-completion timeline
Your timeline might be affected by how quickly mortgage funds can be released, whether you’re in a chain of transactions, and how long the seller needs to move out. Property chains often mean coordinating multiple completion dates.
Step-by-step guide to the exchange and completion process
So, what does the exchange and completion process look like? Here’s a step-by-step guide.
Step 1: Finalise and review contracts
Your solicitor checks the final contract version, making sure all terms are properly defined and agreed by both parties. You’ll need to approve any last-minute changes before exchange can happen.
Step 2: Set the completion date
You’ll agree a completion date that works for everyone involved. If you’re in a chain, this needs coordinating with other buyers and sellers. Most completions happen on weekdays when banks are open for money transfers.
Step 3: Transfer of deposit and mortgage funds
You transfer your deposit to your solicitor for exchange. Then your solicitor arranges for mortgage funds to arrive from your lender ready for completion day.
Step 4: Conduct final checks before completion
Your solicitor runs final property searches and checks. You’ll need buildings insurance in place from exchange, and you might want to do a final property inspection.
Common delays between exchange and completion and how to avoid them
Mortgage lenders sometimes miss deadlines for releasing funds, causing delays. Missing documents and property deeds can also slow things down. Chain-linked properties create another common hold-up, with delays rippling through the chain if one transaction hits problems.
Financing or mortgage approval delays
Chase your mortgage offer early and make sure your lender knows your completion date. Keep in regular contact with your solicitor about the mortgage funds transfer.
Legal or documentation issues
Problems with property deeds or missing paperwork need sorting before completion. Your solicitor handles this but might need quick responses from you about any queries.
Chain dependencies and seller or buyer readiness
Property chains often cause unexpected timing changes. Someone in the chain might have moving delays or funding problems that affect everyone else’s completion date.
Can you exchange and complete on the same day?
Same-day exchange and completion can work for simple purchases, especially when the buyer is a cash buyer i.e. a buyer who is not part of a chain and who doesn’t require a lender. For example, Property Rescue are a professional property buying company that buys properties with cash, so if selling your property to us, we can ensure a same-day exchange and completion if you choose.
When same-day exchange and completion works best
Cash purchases often suit same-day completion. It also works well for empty properties or when both parties want to move quickly.
Risks and considerations of same-day completion
Everything must happen perfectly on the day. If anything goes wrong with money transfers or paperwork, you might not complete on time. Most solicitors prefer having a gap between exchange and completion.
Checklist for the exchange to completion period
Keep a practical checklist handy during the exchange to completion period to stay on track.
Verify all contractual details
Before exchange, double-check all contract details are accurate. Your solicitor will make sure any amendments have been agreed and signed by both parties. Read through the final version carefully and raise any concerns immediately.
Arrange your moving logistics early
Start planning your move well before completion day. Book your removal company, begin packing non-essential items, and schedule time off work. Let key people know your moving date and new address.
Set up necessary utilities and services at the new property
Remember to sort out electricity, water, gas, internet and other essential services for your new home. Contact providers about transferring or setting up new accounts. Consider how quickly you’ll need internet access after moving in.
Prepare funds and notify your bank of large transactions
Make sure your completion funds will be ready and accessible. Tell your bank about the upcoming large transfer – this helps avoid any payment delays or security checks holding things up. Keep all money in one account to simplify the transfer process.
Tips for a smooth exchange and completion process
Here’s practical guidance to help your move go smoothly from exchange through to completion.
Be proactive in communication with all parties
Stay in regular contact with your solicitor, especially in the days around exchange and completion. Keep your phone handy and respond quickly to any messages. Ask your estate agent to keep you updated about other moves in the chain if there is one.
Arrange property insurance from exchange
You must have buildings insurance in place from the moment contracts are exchanged, as you’re legally responsible for the property from this point. Get quotes and arrange cover beforehand so it can start on exchange day. Consider contents insurance too if you want cover for your belongings during the move.
How to sell a house in under 2 weeks
If you need to sell your house quickly, here’s the solution:: sell you property directly to Property Rescue. We are a cash house buyer, and we’ll buy any house or flat in England or Wales.
At Property Rescue, we offer a straightforward way to sell your home fast. We can make an offer within 24 hours and exchange contracts in as little as 48 hours, or within whatever time frame suits you.
You won’t pay any fees. We cover everything including legal costs, EPC certificates and valuations. We buy any type of residential property in any condition.
If speed is your priority and you want certainty about completion dates, Property Rescue offers the quickest, most straightforward option. We handle everything from start to finish, meaning you can focus on planning your move rather than managing the sale process.
Exchanging contracts
Moving house marks a new chapter, and good preparation helps everything go smoothly. Stay organised, keep communicating with everyone involved and soon you’ll have the keys to your new home. And if you want to sell your house quickly, get a free, no-obligation quote from Property Rescue to see how much your home is worth.