I am selling 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 selling 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 midday or in the early afternoon.

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 buyer’s solicitor sending funds out first thing in the morning.

Completion will take place once the funds are received in our account. The keys will then be released to a buyer. Should you hold a set of keys, these will need to be handed over to the estate agent or directly to the buyer where there is no agent. If there is an estate agent, they will need to be handed all sets or keys where you have agreed to hand these over and not leave at the property.

What happens on completion day?

Once the purchase monies reach our account then completion will take place. We will call the estate agent to tell them they can release the keys to the buyer where there is an estate agent. If there is no agent then we will call you to confirm you can hand over the keys directly to the buyer.

How is the existing mortgage redeemed (paid for) on completion?

Your lender sends a redemption statement to us ahead of completion which will give us the correct sum required to send to them to clear the mortgage balance in full. Once we have completed on the sale, the funds are sent to the mortgage lender to clear the balance. We usually obtain confirmation in the weeks following payment of the same which confirms that the balance is clear and that they will contact the land registry to remove their charge on the title register.

Can the buyer still withdraw?

Technically yes, they can but they would forfeit their 10% deposit and would be liable for compensation which can be very expensive. It is very unusual for a buyer 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. This may also mean that the buyer is liable to pay compensation if completion cannot take place on the day for these reasons.

Will you notify the utility companies and the council?

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

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

What happens after completion?

There is nothing further required from you. We will simply confirm that completion has taken place, and you must vacate the property at that time.

You must ensure all items that you have ticked to be included in the purchase price or sold separately under the contract are eft at the property. If you are removing any fixtures or fittings them, you must do so carefully and make good any damage.

You must leave the property in a clean and tidy condition.