27 July, 2017
Enter into the house buying process and you might feel that you need a dictionary to understand some of the jargon being used! To help you grasp the stages of your house purchase and what will happen at each stage, we are looking at some of the key phrases you are likely to hear. Today, we are looking at completion.
What is completion?
The term completion refers to the end of the line with regards to a house purchase; it’s the moment that the house becomes yours. Completion means that everything has been finalised – all the searches have come back, any outstanding queries have been answered, your property survey was good and your mortgage, if you have one, has been agreed and delivered.
Your completion day will be a fixed date which will have been agreed when your exchange takes place. It’s really important once the date is set that completion does happen that day, as there can be financial consequences should it have to be delayed for any reason. Most movers also have their removals booked for the day of completion which is another reason to ensure the agreed date is met.
When does completion occur?
Completion can happen any time after exchange has taken place but generally occurs a week to a couple of weeks afterwards. At exchange you will have paid the deposit for your new house and on completion the full cost of purchasing your new property will be sent to the sellers.
If you are in a chain and have also sold your house, completion takes place in order going up the chain. This means that the person buying your house completes on their sale and gives you the money, you then complete on your purchase sending the money to the people that you are buying from, and so on.
What can you do once completion has taken place?
From the time that completion takes place the house is yours to do with as you wish. If you have been in a chain and have also sold your existing house then it’s likely that completion has also happened on your sale as well and that means you need to move out.
The aim is for completion to take place in the morning with the intention being that you can then collect the keys to your new home as soon as possible. Solicitors handle completion as it’s the final exchange of the legal contracts to make you the owners of your new house. They let us know as soon as completion has taken place and we’ll then inform you when the current occupants have completed their move so you can collect the keys.
What not to do before completion
It’s important to remember that until completion takes place you are not the legal owner of the property. It can feel a little strange once you have exchanged and paid a good chunk of money towards the purchase that you are not yet able to call the house your own.
Nevertheless, you must wait until you have confirmation that completion has taken place before you go to the house and start moving in or making any changes. Anything can happen and it’s essential to get all the legal processes complete.
If you are looking to purchase a new house or sell your home, it’s really important to work with an estate agent you can trust. At Michael Hardy, we know how confusing and frustrating the home-buying or selling process can be.
We use our wealth of experience to explain clearly every step of the way to ensure you feel as informed as possible and that your sale or purchase is a success. Contact us today to find out more.