The big day arrives! You have wanted your dream house for years and finally the time has come. It is completion day. But what does that mean? What happens on completion day?
Let’s take a look.
What Happens On Completion Day For The Seller?
1. Mortgage Redemption Certificate
The seller’s solicitor must obtain a mortgage redemption statement, if the seller has a mortgage.
This will show how much is to repaid to the mortgage company including all interest payable up to the day of completion.
This mortgage must be completely cleared before the buyer will be able to put a charge for their own mortgage against the property.
2. Emptying The Property
Early on the morning of completion, the seller’s removal company will turn up to start emptying the property so that it is vacant and ready for the buyer to move into when completion takes place.
The seller may do this before completion day, but as any property they are buying is likely to be tied to the same completion date, so they would have nowhere to move to, this usually happens on the morning of completion.
3. Receiving The Purchase Monies
Once the buyer’s solicitor sends over the money, completion takes place!
The solicitor will call the seller to let them know that the money has been received, will repay the mortgage company, then either send the money to the seller if they are not buying another property (once deducting their costs and expenses), or then send it, with the money from the new mortgage for the property the seller is buying, onto the next solicitor in the chain.
4. Handing Over The Keys To The Property
As soon as the money is received, the seller’s solicitor will authorise the Estate Agent to release the keys to the purchaser of the property.
What Happens On Completion Day For The Buyer
1. Receive The Mortgage Money
The buyer’s solicitor will have arranged to receive the money from the mortgage company, so that they can send the money to the seller’s solicitor.
2. Getting Ready To Move
As the buyer is also usually moving out of their home and into a new one, they will also have a removal company arrive to empty their house, ready to move into their new one.
Often the removal company will be paid to start boxing non essential items (and everything from the loft and garage – yes we know how much of a mess that is 😉) so that it is not all done on the final day, as it takes a long time to empty most houses.
3. Paying The Seller’s Solicitor For The Property
Once the money comes in from the mortgage company, the buyer’s solicitor will send it over to the seller’s solicitor with the deposit they are already holding from the buyer which in effect is the major part of the completion.
4. Completion
The solicitor will call their client to let them know that the sale has been completed and that they should soon be able to collect the keys.
The buyer will call the estate agent to agree a time and a place to collect the keys.
Above is what happens on completion day, but something else should happen soon afterwards too.
As the buyer and the seller have now obtained their biggest asset, they should both ensure that they have up to date Wills and Lasting Powers of Attorney.
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