What does Completion mean in conveyancing.
- August 17, 2015
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What is completion? The date the seller moves out of the property and the buyer moves into the property. It is when ownership legally passes from the seller to buyer. This usually happens around 1.00-2.00 pm on the day of completion, but can take place later at any time before 5.00 pm.
What can go wrong? If something goes wrong on the day then this is known as late completion. This can cause complications including the buyer not being able to move in and buyer and seller fighting regarding losses (and can subject to litigation).
How long to leave between exchange and completion? This is why the parties should instruct their solicitors to leave sufficient time between exchange and completion for their solicitor to reduce the risk of last minute problems before completion. This is also why the Law Society Contract 5th Edition, recommends 20 working days between exchange and completion. The parties can leave less time and whilst this is becoming more common, it is at their risk of potential loss. The added risk is where the parties leave less than 5 working days between exchange and completion because most lenders require 5 working days between requesting the funds and releasing the mortgage money on completion date.