If are you planning to purchase any property then you must know How Long between Exchange and Completion. There are the main process deals between the buyer and sellers. This article will explain you in detail. Scroll down the article to learn More.

How long between Exchange and Completion?

What is Exchange and Completion? UK

Exchange and Completion is a term word. Exchange is known as exchange of contract. Whereas the completion means the deal or the exchange action comes to an end. In UK, Identically the process of buying and selling the property is called Exchange and Completion. To get more details, read below.

What is an Exchange of contracts?

An exchange of contracts means the respective Buyer and the Sellers will get into a mutual agreement or contract related to purchasing and selling the property. These agreements should be done in front of the legal officer or solicitor. Sometimes, You can exchange the contracts over the phone. The Solicitors read all the contracts and send thow long between exchange and completionhe Documents to one another. Once, the Exchange of contracts gets signed- the seller should provide the property to the buyer. And the buyer will receive money. Therefore, If the contracts are exchanged the buyer has to deposit the cost to the seller.

What is Completion?

Once all the exchanges of contracts (actions) are done then you should follow the completion process. Yeah, Completion is the last step in the transaction of the property. In this Completion process, the sellers will transfer the full ownership of the property to the Buyers officially. Once the seller’s solicitor confirms that they have received the full amount. Then, the sale agreement will come to an end.

How long between Exchange and Completion? UK

Both buyer and seller should decide the time and day for the Exchange and Completion. It gives both the buyer and seller time to decide the final arrangements before the day move. But the time differs and it is based on exchanging contracts and Completions. The Exchange and Completion period will differ, based on the value and the cost of the property.

Choose How long between Exchange and Completion

  • 3 days between exchange contracts and completion.
  • 1to2 weeks for Exchange and Completion.
  • 1to3 months for Exchange and Completion.
  • Exchange contracts and completion are simultaneous.

These are the basic time periods that are consumed for the Exchange and Completion of a single property.

3 Days time for Exchange and Completion:

3 Days is one of the fastest completion periods for Exchange and Completion. If the cost for the particular property is low or within budget, the 3days is enough. Yeah, a 3-day Exchange and Completion contract is good for the buyer but not for the seller. Because you should transfer all your things like the cub-board, Stool chair, etc of your property before the agreement date ends. If you don’t transfer within time – All the things will belong to the buyer. Sellers can’t use it anymore.

Time Between Exchange and Completion for 1to2 weeks

It’s the most common period used in the UK for Exchange and Completion. This time will be so helpful for the sellers to transfer their needs to other places. It will be less stressful. Moreover, you can feel free to pay the mortgage loan to the customer.

1to3 Month for Exchange and Completion:

This will be suitable for first-time buyers who rent a 2-month notice. The formal notice period for assured tenancy rentals is for 2 months. You can shift all your needs from the property. Also, you have more time to draw down the mortgage. So, therefore, if you choose the 1 to 3 months for Exchange and Completion – You can complete all your legal within your time.

Can I do simultaneous exchange and Completion?

Yes, this is possible to do both processes on the same Day. It will depend on the circumstances. Many mortgage lenders need a Minimum Time space between Exchange and Completion.

NOTE: In the General Rule days, the mortgage transaction will not allow to finish these two processes on the Same day. But in Some cases, the process will done at the same time.

When will the Exchange and Completion take place?

Exchange and Completion will take place if any property is for sale. If you are buying or selling any property this Exchange and Completion contract will held. Also, you should make note of some points while Exchange and Completion take place. Those points are listed below.

  • If you are buying – You should provided your exchange deposit. 
  • Verify that the sellers have all the documents and bills. Bills include the current bill, drainage, water, etc. 
  • Ensure that you are buying with a mortgage, you should have the building insurance. 

These are the main points that you should check before you sign the contracts.

What happens on the day of the Exchange contract and Completion process?

On this particular day, the buyer will send the contract to the seller’s solicitor regarding the seller’s property. This may happen on the Telephone or in the office. If the cost is good and this cost satisfies the seller – Then, the contract will made. The buyer and seller will sign the sale agreement. So these are the process that happens on the day.

Do this! Before buying property -Exchange and Completion Contract:

Exchange and Completion Contract

Before buying the property, ensure that you have noted these points.

  • Note down a Final meter Reading.
  • Tell a Broadband and utility provider.
  • Arrange mail redirection with Royal Mail.
  • Get Building insurance and Home insurance.

These actions should noted when exchange and Completions are on the same day.

Also, read What is Amazon Digital Charge UK?

Is there any Maximum Time Limit?

The answer is No, there is no legal Time for the Completion to take Place. Moreover, it needs that completion occurs between 7- 28 days after the exchange of Contracts. Also, it allows the parties to check everything before finalizing the Transactions.

What happens if the Exchange and Completion is not done within a given date?

Suppose the Completion is not completed within one month. That leads to significant problems for both parties. If any delay happens due to the seller then the buyers may wish to talk them back to seek out another buyer. Again restart the Conveyancing process.

In the case of the buyer being the reason for the delay then the seller has the right to withdraw from the transaction altogether and search for another buyer.

The Final Words

From this article, You guys know how long between Exchange and Completion. It will decide for the seller and buyers. I hope you like this article, If you have any doubts related to this guide, Let me know in this comment section.