There are many steps in the process of buying and selling - the final one being completion. Most people understand that a sale becomes legally binding upon exchange of contracts and, at this stage, the completion date is written into the contract. On exchange a purchaser will pay a deposit of between 5-10%, and the remainder of the funds are paid on completion ie the day that you finally own your new home - lock, stock and barrel.
In the past, many sales had a gap of 4-6 weeks between exchange and completion but these days we often see this reduced to 2 weeks - sometimes (and for the brave only!) we even have simultaneous exchanges and completions. But the gap is there to leave a welcome breathing space in which to organise the practicalities and detail. Also, some mortgage lenders generally like a 7-day period within which to draw down funds.
And here is how to fill the gap:
Pack as soon as possible after exchange.
Prior to exchange receive quotes from removals companies but don’t commit (ie pay the deposit) until your solicitor is confident of exchange. This is especially difficult in busy periods such as Easter or Christmas - and remember a lot can happen between ‘nearly’ and ‘actually’ exchanging.
If you’re packing and moving yourself on a DIY basis - give yourself plenty of time. You can be sued under contract if you’re running well behind time on the day, thereby incurring your buyer additional removal costs.
Inform relevant utilities and services eg: gas, electric, water, phone, satellite, cable suppliers, TV licence, post office, bank, DVLA, your doctor and insurance companies etc. Take meter readings on the day you leave.
The buyer will have been provided with the supply details on the Property Information Form filled in by the vendor - so the buyer knows who to contact to continue or change supplier.
The buyer MUST insure their new home from the day of exchange as you are now committed to buying it even if it burns down.
A few days prior to completion the estate agent will make arrangements in respect of the key handover. Generally this means we will collect a spare set from our seller and then meet the purchasers at the property with the key to the door. It is important to note that we can only release keys once the seller’s solicitor has confirmed that the completion monies have been received.
Finally, emotions can run high prior to an exchange when the estate agent and solicitors are trying their best to dovetail an ideal completion date between seller and buyer. This can get even more protracted when a lengthy chain is involved: holidays, school terms, bereavements, sheer practical and physical logistics can all create stumbling blocks.
But, as with all things, don’t forget the bigger picture - compromise: it’s better to bend a little than break the sale.
In the past, many sales had a gap of 4-6 weeks between exchange and completion but these days we often see this reduced to 2 weeks - sometimes (and for the brave only!) we even have simultaneous exchanges and completions. But the gap is there to leave a welcome breathing space in which to organise the practicalities and detail. Also, some mortgage lenders generally like a 7-day period within which to draw down funds.
And here is how to fill the gap:
Pack as soon as possible after exchange.
Prior to exchange receive quotes from removals companies but don’t commit (ie pay the deposit) until your solicitor is confident of exchange. This is especially difficult in busy periods such as Easter or Christmas - and remember a lot can happen between ‘nearly’ and ‘actually’ exchanging.
If you’re packing and moving yourself on a DIY basis - give yourself plenty of time. You can be sued under contract if you’re running well behind time on the day, thereby incurring your buyer additional removal costs.
Inform relevant utilities and services eg: gas, electric, water, phone, satellite, cable suppliers, TV licence, post office, bank, DVLA, your doctor and insurance companies etc. Take meter readings on the day you leave.
The buyer will have been provided with the supply details on the Property Information Form filled in by the vendor - so the buyer knows who to contact to continue or change supplier.
The buyer MUST insure their new home from the day of exchange as you are now committed to buying it even if it burns down.
A few days prior to completion the estate agent will make arrangements in respect of the key handover. Generally this means we will collect a spare set from our seller and then meet the purchasers at the property with the key to the door. It is important to note that we can only release keys once the seller’s solicitor has confirmed that the completion monies have been received.
Finally, emotions can run high prior to an exchange when the estate agent and solicitors are trying their best to dovetail an ideal completion date between seller and buyer. This can get even more protracted when a lengthy chain is involved: holidays, school terms, bereavements, sheer practical and physical logistics can all create stumbling blocks.
But, as with all things, don’t forget the bigger picture - compromise: it’s better to bend a little than break the sale.
Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk
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