What happens on completion day?

What is completion day?

Completion day is the final step of the homebuying process. On this day, the property ownership is legally transferred from the seller to the buyer, who also receives the keys.

 

It's the point at which the sale becomes legally binding, and you officially become the owner of your new home. Your solicitor will confirm the transaction and handle all necessary paperwork and deeds to ensure the legal transfer is complete.

How completion differs from exchange of contracts

While completion day marks when you take ownership of a property, it's important to understand that this is different from the exchange of contracts:

• Exchange of contracts marks the point at which the sale becomes legally binding. At this point, both parties are committed to the transaction, and pulling out would result in financial penalties.

• Completion follows the exchange of contracts and is when the actual transfer of ownership occurs, and money changes hands.

 

The two stages are distinct but connected parts of the homebuying process.

How does completion work for buyers and sellers?

The completion process differs depending on whether you’re buying or selling a property:

• For buyers, completion day is when you officially become a homeowner and can move into your new property. It's the culmination of weeks or months of house hunting, viewings, negotiations, and legal processes.

• For sellers, it marks the end of their ownership and the receipt of the sale proceeds. If you're the seller, you'll need to sign off on the mortgage completion statements and ensure the property is ready for vacant possession.

 

Both parties need completion day to go smoothly to ensure a successful transaction.

When does completion day typically happen?

Completion day typically occurs between 7 and 28 days after exchanging contracts. The exact timeframe depends on your circumstances and the type of property you're buying.

How the completion date is set

The completion date is agreed upon by both the buyer and seller, usually through their solicitors or conveyancers. This date is set at the exchange of contracts stage, giving all parties a clear target to work towards.

 

Your solicitor will coordinate with the seller's solicitor to find a mutually convenient date that allows enough time for all necessary preparations. Factors like moving arrangements, mortgage availability, and chain considerations all influence when completion is scheduled.

Typical timelines after exchange: New build vs resale

For resale properties, the completion day timeline is often more flexible and depends on the entire chain. For new build homes, completion dates are often aligned with construction schedules and may be more predictable, though they still typically fall within this 7 to 28-day window. Your solicitor or conveyancer will keep you informed of any changes to the agreed completion date.

What needs to be ready before completion day

Follow this checklist to ensure you’re ready for completion day and can avoid any delays.

Mortgage conditions

Before completion can proceed, the buyer's solicitor will ensure that all mortgage conditions are met and request the funds from the lender. This includes verifying that the mortgage offer is valid, all lender requirements have been satisfied, and the property valuation is acceptable.

 

Any conditions imposed by the lender must be resolved before they release the mortgage funds. Your solicitor will coordinate with your mortgage provider to ensure everything is in order.

Documents, legal searches & enquiries

All legal documentation must be ready before completion day. This includes property searches, survey reports and responses to any legal enquiries raised during the conveyancing process.

 

Your solicitor will have conducted thorough checks on the property's title, planning permissions, local authority searches and environmental factors. Any outstanding issues or queries must be resolved before completion can take place.

Finances

Have your funds in one place, ready to go once it's time. This will help speed up the process. You'll need to ensure your deposit has been paid (usually at exchange), and that all remaining funds are available for transfer.

 

This includes the balance of the purchase price, conveyancing fees, Stamp Duty Land Tax (or Land Transaction Tax in Wales), and any other associated costs. Keep all relevant paperwork at hand to facilitate smooth financial transactions.

Inspections and snagging

For new build properties, additional preparations are required before completion. You can typically conduct a final inspection of the property to assess the build quality and identify any issues, this is known as snagging.

 

Any defects or unfinished work should be noted and reported to the developer, who will address snagging issues either before completion or shortly afterwards under warranty. Ensure you're satisfied with the property's condition and that all agreed-upon items are present and functioning.

Step-by-step guide to completion day timings

Our step-by-step guide covers the typical completion day process. Remember, while most completions go smoothly, delays can occur. The most common issue is that transferred funds don’t arrive on time due to banking delays. So, it’s always good to have a backup plan in case any issues arise on the day.

1. Solicitors make final checks

Completion day begins with your solicitor conducting final checks to ensure everything is in order. They'll verify that all documentation is complete, all conditions have been met, and both parties are ready to proceed. This is the last opportunity to identify and resolve any potential issues before the transaction is finalised.

2. The buyer's solicitor transfers the funds to the seller's solicitor

Once all checks are complete, the buyer's solicitor will transfer the purchase money to the seller's solicitor. This is typically done electronically through the banking system. The transfer includes the balance of the purchase price after deducting the deposit already paid at the exchange of contracts.

3. The seller's debts are settled

When the seller's solicitor receives the funds, they'll use them to redeem any outstanding mortgage on the property. This involves paying off the seller's existing lender so that the property can be transferred. Any other debts secured against the property must also be settled at this point.

4. Completion statements are prepared

Both solicitors will create completion statements of all payments made and received, including any outstanding invoices. These statements provide a detailed breakdown of all financial transactions related to the sale, ensuring transparency and accuracy for both parties. The statements will show exactly where the money has gone and confirm that all obligations have been met.

5. Keys are released to the buyer

The seller's solicitor will confirm receipt of the funds and authorise the release of the keys to the buyer. At this point, the seller must provide vacant possession, meaning the property should be empty, clean, and ready for you to move in.

 

You'll also be able to collect your keys. But where do you collect keys from on completion day? For resale properties, you will usually collect them from the estate agent’s office, or the developer's sales office for new build homes.

Legal & financial things that happen after completion

Once you’ve finalised your house completion, there are a few more things to take care of.

Payment of Stamp Duty or Land Transaction Tax

After completion, your solicitor will handle the payment of Stamp Duty Land Tax (SDLT) in England and Northern Ireland, or Land Transaction Tax (LTT) in Wales. This tax must be paid within 14 days of completion, though your solicitor typically manages this on your behalf.

 

The amount depends on your property's purchase price and whether you're a first time buyer or purchasing an additional property. Your solicitor will have calculated this in advance and included it in your completion costs.

Change of address notifications

Once you've moved in, you'll need to notify various organisations of your address change. This includes:

• Utility providers. Contact gas, electricity, water, and broadband suppliers to set up accounts in your name.

• Council tax. Inform your local council that you've moved in so they can set up council tax payments.

• Electoral roll. Register to vote at your new address.

• Banks and financial institutions. Update your address for all accounts, credit cards and insurance policies.

• DVLA. Update your driving license and vehicle registration.

• Medical services. Register with a new GP practice and dentist if you've moved to a new area.

• Other services. Inform your employer, schools, subscription services and any other relevant organisations.

Completion day checklist

Completion day can be stressful, so we're here to help. Our checklist includes tips on getting organised to ensure a hassle-free move:

• Plan ahead. While you likely won't move into your new home until completion day, you can start emptying your current one. Our packing tips and advice can help you keep track of everything during this busy time.

• Be communicative. Communication is key, especially as you approach completion day. Your solicitor or conveyancer may need to contact you to finalise the sale, so ensure your phone is with you at all times.

• Have your funds in order. Have your funds in one place, ready to go once it's time. This will help speed up completion.

• Be prepared. Keep all relevant paperwork at hand and confirm moving-in and out times with your landlord (if you’re currently renting) and solicitor.

 

Ready to start your homebuying journey? We have a range of schemes and offers to help you move. Call our Sales Advisers today to find out more.