Time between Exchange of Contracts and Completion

The time between exchange of contracts and completion is a critical period in any property transaction. It is during this time that all the necessary administrative and legal tasks are completed, and the sale or purchase of a property is finalized. It is a period that can often be stressful for both buyers and sellers, as there may be unforeseen delays that could potentially impact the transaction.

The time between exchange of contracts and completion is typically two to three weeks, although this can vary depending on the specific circumstances of the transaction. During this period, there are a number of key tasks that need to be completed. These include:

1. Payment of the deposit: Once contracts are exchanged, the buyer is required to pay a deposit, usually amounting to around 10% of the purchase price. This deposit is held in a special account and is released at completion.

2. Completion of mortgage documentation: If the buyer is obtaining a mortgage, they will need to complete all the necessary documentation in order to secure the loan.

3. Searches and surveys: The buyer`s solicitor will carry out a series of searches to ensure there are no issues with the property, such as title defects or planning restrictions. A survey may also be carried out to assess the property`s condition.

4. Transfer of funds: Once all the necessary paperwork has been completed, the buyer`s solicitor will transfer the funds to the seller`s solicitor. This is known as the `completion monies`.

5. Completion: Finally, completion takes place on the agreed date, at which point the buyer takes possession of the property and the seller receives the balance of the purchase price.

It is important to note that delays can occur during this period. These may be due to issues with the search results, delays in obtaining mortgage documentation, or delays in transferring funds. In some cases, the transaction may need to be extended if these issues cannot be resolved within the agreed timeframe.

To avoid delays, it is important for both buyers and sellers to work closely with their solicitors and ensure all documentation is completed as quickly as possible. Communication is key during this period, and any issues or concerns should be raised promptly.

In conclusion, the time between exchange of contracts and completion is a crucial period in any property transaction. By understanding the tasks that need to be completed during this period and working closely with solicitors, buyers and sellers can help ensure a smooth and stress-free transaction.