What happens on completion day?

On completion day, the legal ownership of a property is transferred from the seller to the buyer, final payments are made, and the buyer gains access to their new home by picking up the keys. This is the final step in the home-buying process after all prior checks and paperwork are confirmed.

Getting to the end of the intricacies of selling your old home, purchasing the new one and picking up the keys to your new property is a truly exciting prospect, so you'll want to ensure the process runs as smoothly as possible on completion day.

The term ‘completion' refers to the legal status of the transaction whereby ownership of a property is formally transferred from the seller (the former owner) and the buyer (the new owner).

This differs from the exchange of contracts stage which is the prior milestone in the process.

When the contracts are exchanged via the seller's and the buyer's conveyancing solicitors, this marks the point where both parties are legally obliged to continue with the transaction with financial penalties and forfeits coming into play should either party drop out.

From a paperwork standpoint, the completion step is simply a formal acknowledgement that the agreements within the exchanged contracts have been met, and all monies have been received.

The date for completion is one of the pieces of information that are agreed as part of the contractual process and is the last step of the conveyancing process.

In some instances, exchange of contracts and completion can occur on the same day but are usually a set period apart to allow time for the final preparations to be completed. Although there is nothing legally to prevent completing on the same day as exchange, it is fraught with risks since it is reliant on everything going smoothly in the transfer of ownership in the transaction. 

This means that you must ensure that all monies are available for transfer between the parties and that all are signed up to achieving it. It's extra pressure and stress in an already anxious environment and should generally be avoided, especially if the transaction is a link in a chain, since you are reliant on so many factors beyond your control.

Leading up to the day of completion, your conveyancer will be making the final checks to ensure that everything is in place for a smooth transition of ownership from seller to buyer.

They will be talking to all the other conveyancers with an involvement in the transaction, as well as communicating along the entire chain - the longer the chain, the greater the risk of something going awry. And it is a true aphorism that the chain is only as strong as its weakest link.

If you are buying the home with a mortgage loan, the solicitor will also make checks with the mortgage lender to verify that all the relevant conditions for providing the loan have been successfully met, with the provision of the requisite evidence (for instance, verifying that buildings insurance is in place for the new property).

If you are selling the property with an outstanding mortgage amount, the conveyancer will organise a redemption certificate that states the amount of money there is outstanding on the day of completion to confirm that that value can be met as part of the process - as you have a mortgage on the property you are selling, the lender effectively owns at least part of the title for the property and will require the guarantee that that portion and remaining monies will be transferred to them on successful completion of the transaction. Thereby they will relinquish all interest in the home from that point onwards.

The conveyancing solicitors will also prepare completion statements for both sales and purchases, which describes all payments to be made and received, alongside any invoices for payment at the point that the transaction is successfully completed.

The day that you've been anticipating has finally arrived when you take control of the new home.

There are some important steps to the process, because it isn't as straightforward as picking up the keys and filling up the rooms of the home with your furniture and possessions. 

On completion day, here's what happens:

Final checks

Your conveyancing solicitor will make the necessary last checks to finalise the completion.

Transfer monies

If you are buying a property, your conveyancing solicitor will oversee the process of transferring the money to the seller's solicitor. If you are using a mortgage, the solicitor will co-ordinate with the lender to verify that all is well with the loan and manage the transfer of the loan. If you are selling a property, your conveyancer will manage the receipt of the funds from the buyer's solicitor. If you have had an outstanding mortgage on the sold property, as per the redemption certificate details that have already been drawn up, they will co-ordinate the transfer the amount to the lender from the pot received from the buyer.

Confirmation of completion

Once all the transfers have been successfully completed and acknowledged, your conveyancing solicitor will be able to confirm that the completion stage is complete and, in the case of selling a property, advise the estate agent (or whoever is designated as holding them) that the keys may be released to the buyer. In the same way, if you are buying, your solicitor will receive notification from the seller's conveyancer that the keys may be released.

All charges paid

Your solicitor will also confirm that all outstanding charges have been successfully paid, and, if there is any money left over from a sale, transfer that remaining amount to your bank account.

Notification of completion

This is the final step of the process, which dictates that you are now free to move into your property by picking up the keys from the designated holder.

Pick up the keys

This is the final step to gaining access to your new property.

Move in

You can now instruct your removals firm that all is ready for the removals team to unload your possessions into the home.

Transfer ownership

The final step that the solicitor will make on your behalf is to update HM Land Registry with the details of the transfer of ownership of the deeds. This is a legal requirement that must be completed within two weeks of the completion day.

One additional point to consider is the case where you are moving into a new-build property. The process is slightly different from the standard because you are not moving into an existing property and are dependent on it being built to a certain standard by a specified date. 

Rather than having a completion date, your conveyancing solicitor will establish what is known as a ‘long-stop date' with the building firm - this is the point at which the property is expected to be ready for you to move in. The benefit of setting this date is that, should the builder not have the home ready for you, you can cancel the contract without any legal penalties being incurred. It is therefore in the builder's interest to ensure the home is ready for you on the specified date.

This is a tricky question to answer precisely because it depends on a few important factors that can delay completion day.

The most important of these is understanding how long the property chain is and where you are within it. Releasing funds requires delicate management and a certain amount of time to verify that all has occurred as planned before the next link in the chain can take control.

While most conveyancing solicitors will be focused on ensuring the completion process is as smooth and problem-free as possible, they will be reliant on solicitors earlier in the chain confirming that the completion under their control has been satisfactorily completed.

But there are other problems that might arise, including a failure to release the funds, which will take time to understand and resolve. 

In addition, you might fall victim to what is known as Friday afternoon fraud. The largest number of completions are planned for a Friday - mainly to allow the new homeowners to sort out the living arrangements and settle in over the weekend before heading back to work on the following Monday. Since most conveyancing firms don't operate at the weekend, and the financial transfers are more restricted on Saturdays and Sundays, too, this means that any such fraud won't be noticed until after the weekend, making it far more difficult to resolve and recoup any losses or to step in to prevent it happening.

If everything goes to plan, you should be able to get a planned window from your conveyancing solicitor so that you know when to expect the news of a successful completion.

But you should make sure that you have good communication set up with your solicitor so that they can keep you apprised of progress and any problems that have arisen. Bear in mind that, in the transition from one property to the next, you may not have the usual accesses during the day, such as broadband, with which to communicate.

There may be occasions that, despite everyone's best efforts, the completion window moves out to a time that means it won't happen on the planned day. This will be quite common in cases where there is a long chain and you are towards the end of it.

If you have not completed on the planned day, the completion process will then simply move to the next working day and resume from where it had got to.

Note that, if the completion is delayed by a step earlier in the process, there may be financial penalties applied to those highlighted as the cause. These payments will cover inconvenience and extra costs, such as hotel accommodation, temporary possessions storage, additional travel costs, pet housing, and so on.

Naturally, it follows that if it is your transaction that is at fault, you'll be culpable and therefore be subject to any financial penalties that are applied.

Be aware, too, that such financial penalties will be applied to all subsequent transactions that have been interrupted by the failure in the completion at any point in the chain.

If you are towards the end of a long chain and are worried about completion on your target day, you might want to consider breaking the chain by setting up the completion of the sale of your current property and the purchase of the next one to occur on different days. You'll incur costs of storage of your furniture and possessions, but you'll reduce the high stress of the day.

It's worth planning for the day a few weeks beforehand, with a checklist to ensure nothing is forgotten or left to chance. If you are a first time buyer, you cal also check our checklist for first time buyer on completion day

Communication 

How are you planning on communicating on the day? It's best to use one source (say, a mobile number or email) to avoid potential confusion. Talk to your solicitor to agree a communications plan so that you know what to expect and when, particularly in the case where there are problems to resolved.

And, most importantly, you should recognise that your utilities might be turned off by those companies as part of the transition from you to the next owner. This means that landlines, broadband, and other important methods of communication may no longer be available.

If you are using a mobile phone or other device for the communication, ensure that it is fully charged by the morning of the completion day, and ensure the sound is on so you can hear it calling you. 

Respond quickly to any communication that requires your input as this will only help to move the transaction on. If the device is likely to be in constant use, too, you might want to think about how to keep the charge up throughout the day.

Funds and paperwork

This might appear an obvious point but this is critical to the success of your part of the completion chain. Ensure that, from your standpoint, all the paperwork is completed and with the rightful person. Talk to your mortgage lender, too, to confirm and guarantee that all is well for transfer of funds when it comes.

Utilities

Contact the providers of your utilities (gas, electricity, water and sewerage, landline, broadband, etc.) early in your move to let them know that you are planning to move and, when you have it confirmed, the date of completion. And, if any information changes prior to completion, ensure that they are aware if necessary.

Take final readings from all the meters (gas, electricity and water) and put them in a safe place. Once the dust has settled on the completion and your move, you can contact them with this information, so that they know how much to charge you for any residual bills.

Forwarding post

Often forgotten but you should visit a post office and ask for a forwarding form or look online. The details will be simple to fill in and there will be a small charge so that Royal Mail can redirect your mail from your old property to the new one. There are bound to be some companies and people that you haven't sent a change of address, so this ensures you get everything sent to you and allows you to rectify any updates in calmer times.

Safety box

When you move, you'll no doubt want refreshments at the new home, so pack a box with the necessities: tea, coffee, sugar, milk, biscuits, spoons, mugs, anything that will help. Keep this box with you as a life-saver!

More important, though, is to ensure you have all your important items with you: anything for identity (passports, driving licences, identity cards, work passes, etc.), wallets and purses including cash and cards, mobile phones, and anything that you need to keep secure. Always keep these items with you throughout the completion day and until you've successfully moved into the new home.

Moving home is a stressful time and the day of completion can be a mixture of heightened anticipation as well as a source of stress and anxiety. Ensuring you know what is going on and the part you are playing in it will make the day run far smoother.

But, if you have any concerns, your conveyancing solicitor will always be on hand to guide you through the process and answer any questions you may have.

If you are considering a purchase or sale of a property, you'll want to make sure the process is as trouble-free as possible, so why not talk to us at Homeward Legal today about your plans?

The experts at Homeward Legal are well-versed in all aspects of the conveyancing process, providing a quality service at a fee that is great value for money!

Call to get your conveyancing quote started, or to discuss your concerns with your plans to purchase or sell your next home. You can also get a quick conveyancing quote online