What is the difference between completion and exchange?

Exchange is when a property sale becomes legally binding, a deposit (usually 10%) is paid, and a moving date is fixed. Completion is the final day when the remaining money is sent, ownership changes, and you get the keys to move in.

Can a house fall through between exchange and completion?

Yes, a house sale can technically fall through between exchange and completion, though it is very rare because contracts are already legally binding. Key risks include severe financial penalties, catastrophic physical damage, and sudden personal or financial emergencies.

How long does it take between exchange and completion?

The time between exchange of contracts and completion is typically one to two weeks (7 to 14 days), though it can range from a same-day exchange to several months depending on what the buyer and seller agree.

Is completion the same as exchange?

Conclusion. The difference between exchange and completion is essential to understand when navigating the property-buying process. Exchange legally binds the transaction, while completion finalises ownership and allows the buyer to take possession.

Why do solicitors need 5 days between exchange and completion?

Solicitors typically need 5 working days between exchange and completion to order and receive mortgage funds, perform final administrative checks, and allow clients time to organize logistics. Most mortgage lenders require at least 5 working days' notice to release and transfer funds to the solicitor's account.

Exchange and Completion: What's the Difference?

Who moves first on completion day?

On completion day, the seller must move out first before the buyer can move in. This only happens after money is sent from the buyer to the seller and the estate agent gives the green light to release the keys.

What time of day do solicitors usually exchange contracts?

Solicitors usually exchange contracts around midday, most commonly between 12:00 pm and 2:00 pm, though it can happen anytime during standard business hours. As noted by users on Reddit, timings vary wildly, and there is a consensus that delays pushing the process into the mid-afternoon or late afternoon are common when dealing with property chains.

Who owns the house between exchange and completion?

After contracts are exchanged, the seller still legally owns the property, but they are contractually bound to sell to the buyer. The transfer of ownership, along with the legal right to move into the house, occurs later on the completion date, which is typically set at the exchange of contracts.

What time do you have to leave your house on completion day?

You typically need to leave your house by 1:00 PM on completion day. By this time, the property must have "vacant possession" (completely cleared of all your belongings) so the buyer can collect their keys and move in once funds have cleared.

Is it risky to exchange and complete on the same day?

Yes, exchanging contracts and completing on the same day is risky, mainly due to last-minute delays, financial complications, and moving stress. It is generally only practical for chain-free, cash, or first-time buyers, or empty properties where there is no property chain to coordinate.

Do solicitors tell you when contracts are exchanged?

Yes, solicitors do tell you when contracts are exchanged. They will call you on the day to get your final permission before they lock the deal, and they will call or email you back once the official swap is done.

How much deposit is needed on exchange?

An exchange of contracts is when the sale becomes binding on both buyer and seller and the deposit, typically 10% of the purchase price, acts as security between exchange of contracts and the completion of the sale.

Who decides the completion date?

The completion date is decided and agreed upon by the buyer and the seller, with input and coordination from their solicitors or conveyancers. If there is a property chain, every person involved in the chain must agree on the same date.

Why do solicitors take so long to exchange contracts?

Solicitors take time to exchange contracts because they are legally required to conduct extensive due diligence to protect your investment. They cannot exchange until formal mortgage offers are issued, satisfactory local authority searches are returned, and all legal inquiries—especially in a property chain—are resolved.

Who bears the risk between exchange and completion?

After exchange generally the buyer is responsible for any problems with the property – but check your contract to be absolutely certain. That means you need insurance to protect you if anything happens to the property such as fire, floods or accidents.

How often do buyers pull out just before exchange?

Around 20% to 30% of property sales fall through before reaching the contract exchange stage, making last-minute withdrawals a common and frustrating occurrence. Because agreements are not legally binding until contracts are exchanged, buyers can legally pull out at any time without financial penalties.

What do solicitors do on completion day?

On completion day, solicitors manage the legal and financial transfer of the property. The buyer's solicitor transfers the final funds to the seller's solicitor using the CHAPS banking system. Once funds clear, the seller’s solicitor releases the keys. Finally, both parties finalize payments, and the buyer's solicitor registers the new ownership with the Land Registry.

Do you have to clean a house on completion?

Sellers' checklist

It's courteous to leave it clean and tidy, wiping any surfaces, doing the hoovering, and perhaps cleaning the windows. You may decide to get a professional cleaner in to make things easier for you on the day.

Does completion have to be on a Friday?

No, property completion does not have to be on a Friday. It can happen on any working weekday (Monday through Thursday) as long as all parties in the chain and your conveyancing solicitors agree. Weekends and bank holidays are excluded because same-day bank transfer systems (like CHAPS) are closed.

Can you move furniture in before completion?

A Key Undertaking can allow the Buyers to carry out any necessary works at the Property or to store furniture, but they are not usually allowed to move in their personal belongings to the Property.

What can go wrong on completion day?

On completion day, the main things that can go wrong include delayed money transfers through the banking system, property chain holdups, and late keys or moving truck issues. While most house moves finish safely, you can face a few stressful roadblocks.

Do I need to do anything between exchange and completion?

Your most obvious and pressing task between Exchange and Completion is to pack. Depending on how long you long you have between the two dates will determine just how pressed you are for time, but tackle the task steadily over this interim period and you will get there.

What do solicitors do before an exchange?

Before exchange, your solicitor reviews searches, enquiries, mortgage conditions, title documents and the contract paperwork to confirm the transaction is legally ready to proceed.

Why do solicitors want to exchange and complete on the same day?

Exchanging contracts and completing on the same day, known as "simultaneous exchange and completion," can offer convenience and reduce the risk of unexpected changes or issues arising between the two events.

Should I pack before exchange of contracts?

Yes, you can start packing non-essential items before exchanging contracts, but you should wait for the exchange before boxing up your daily necessities. Before exchange, a property sale is not legally binding, meaning there is a small risk the chain could collapse.