I am buying a property: Contracts exchanged – what next?

Our property solicitors are often asked “What happens next…” once contracts have been exchanged and to help, we have put together a few regularly asked questions to guide you when buying or selling a property.

How long will completion take when buying a property?

It depends on the speed of the banking system and usually completion will happen 1-2 hours after the funds are sent. If you are in a chain this can sometimes mean completion isn’t until the funds have cleared in the accounts of the solicitors lower in the chain.

However, if you are in a short chain then completion can be as early as 10:00am. Again, it really does depend on the banking system and reliance on the seller’s solicitor receipting the monies that are sent to them first thing in the morning.

Completion will take place once the funds are received in the seller’s solicitor’s account. The keys will then be released to you so that you can collect them. These may be held at the estate agent where there is an agent involved or may be passed directly to you by the seller where there is no agent. You should check that all keys have been left with the agent or at the property to ensure that there are none missing.  

How is the mortgage money sent on completion?

Your lender sends the funds directly to us when we have requested them to and this is usually a day ahead of completion to ensure that we are in full funds the day of completion. These mortgage monies are sent along with the balance of the purchase monies to complete the transaction.

Once these have been sent and the purchase completes we will inform the lender that completion has taken place and that we will register their interest in the property noting it on the title register along with your interest.

What happens on completion day?

We will call you to confirm that the funds have landed with the seller’s solicitor and that the release of keys has been actioned by the seller’s solicitor by calling the estate agent. If there is no agent, then we will call you to confirm you can obtain the keys directly from the seller.

Can the seller still withdraw?

Technically yes, they can but you would be put back in the position before the contract if they fail to complete with you. The 10% deposit is returned to you, and the seller would be liable for compensation which can be very expensive. It is very unusual for a seller to withdraw or be unable to complete after exchange of contracts.

It may be worth noting that completion can also be delayed in circumstances where the mortgage funds have not arrived or if there are delays in sending the completion monies up the chain. It may be the case that completion cannot take place on the planned date and if this situation arises then you could be liable for compensation and associated costs e.g. removal costs and accommodation costs of the seller where they are unable to complete on their related purchase transaction.

Will you notify the utility companies and the council that I own the property?

No, you should notify them after completion of the change in ownership.

It is advisable that you take meter readings upon entering the property to avoid any issues later regarding the same.

What happens after completion?

We will proceed to register your ownership at the land registry. This process can take up to 4 – 6 months and if you have a complex application then it can take more than 6 months so please don’t be alarmed if you don’t hear from us for some time.

What documents will I receive?

We will send you the updated title after the land registry have completed the registration application. We will also send you any indemnity policies or original documents we receive from the seller.

You should ensure you have downloaded and saved your legal report and the documents shared with you via the shared folder as you will need these when you come to sell.

What will I need to sell the property?

Your ownership will be stored electronically at the land registry so this will be a matter of public record. Your conveyancer will be able to obtain proof of your ownership electronically by downloading the title from the land registry.

A buyer will want to see planning permissions, building regulation certificates, copies of service records for heating, electricity or drainage systems if there have been checks during your ownership, guarantees or warranties, any legal agreements or correspondence with management companies or neighbours regarding the property, party wall agreements and anything else relevant to your use of the property. You should aim to keep records as best you can when you do any works to the property applying for the relevant planning permissions and building regulations where necessary.