Author Box
Articles Categories
All Categories
Articles Resources

What's The Difference Between Exchange Of Contracts And Completion In Conveyancing?

April 18, 2012 | Comments: 0 | Views: 195

When moving house one of the problems encountered is the new terminology that you will encounter. Often phrases such as 'exchange of contracts' and 'completion' are known to your solicitor and estate agent but not to you. It's important to know the difference, and which stage of your sale or purchase they relate to, as both have significant implications for you.

Exchange of contracts is the stage at which you have agreed all the various terms on which you will buy or sell your property and includes the exact price to be paid taking account of any allowances (reductions to the price) to be made and any additional payments for contents. For contracts to be exchanged your solicitor also needs to have received all of your search results, have received your mortgage offer, and resolved all the legal queries and any problems. Before exchange of contracts can take place, everyone needs to have agreed the date for moving in. Once all of these issues have been resolved and agreed it is at this point that your solicitor will proceed with exchanging contracts with the solicitor acting for your seller or buyer. If you have a sale and purchase your solicitor will ensure that contracts are exchanged on your sale and purchase at the same time.

Exchange of contracts is very important because once it has taken place the contracts become legally binding and you are committed to selling or buying or both (as the case may be). This means that no-one will be able to pull out of the deal without being in breach of contract and incurring significant legal penalties. You do not move home on exchange of contracts, but you do set the date on which you move home (known as the completion date) which is also the date by which you must have all funds available to buy your new property.

It is therefore important that exchange of contracts is not confused with completion, and you leave a sufficiently large period of time between exchange of contracts and completion to allow you to finalise all matters in respect of your move before you have to vacate your property. Because anyone can pull out of the deal before exchange of contracts takes place your solicitor will advise you not to make any firm moving arrangements, such as booking your removals, until after exchange of contracts.

Completion is the day of moving, and is often fraught with difficulties, stress and pressure. You not only have to ensure that everything has been packed and that your removals are booked and ready, there is often a delay between you moving out of your old house and being able to collect the keys to enable you to move into your new house. Any such delay tends to be caused by issues with the banking system and the transfer of monies on the day of completion between all of the solicitors in the chain.

If there is a long chain, each solicitor has to send the money on to the next solicitor and that party will have to wait for money to be received (and sometimes mortgage funds to be received) before they can then send the money further up the chain. You may therefore have to be patient in waiting for your seller to receive the monies from your solicitor, before you're able to collect your keys and start to move in. Often the delay can mean waiting for a few hours, however, typically the delay is not too long and you should be able to move into your new property fairly quickly.

So to summarise, exchange of contracts is the point at which you are legally bound to sell or buy your property, and completion is the day when money changes hands and you move out of your old home and into your new one.

Are you are looking for expert conveyancing solicitors in Hull? Talk to Solicitors in Hull Myer Wolff. Ashley Easterbrook is a partner in the firm's private client department.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Hull Solicitors


Solicitors In Hull


Hull Conveyancing


Conveyancing Solicitors In Hull

Teenage rebellion is easier to tolerate in book or film form. Take a look back at some of the most well known and loved "coming of age" stories set in boarding schools.

By: Harvey McEwan l Arts & Entertainment l July 10, 2012 lViews: 445

An important thing you have to consider before working out is having a pair of great training shoes. You cannot immediately undergo any physical training wearing inappropriate footwear. If you do so,

By: Steve Hill l Recreation & Sports l July 10, 2012 lViews: 349

Granite is one natural stone that is used for several purposes from dimension stone to countertops to sculptures. The use of granite for building the temples and monuments was initiated millions

By: Steve L Patterson l Arts & Entertainment l July 10, 2012 lViews: 298

Up to 65,000 H-1B visas for new employment may be issued each fiscal year (FY) for professional workers, including medical providers. In general, a person who already has an H-1B and applies for

By: Ann Badmus l Arts & Entertainment l July 10, 2012 lViews: 308

Beside coin shooting, gold detecting or the many other things you can do with your metal detector. There is a large group of people who take their metal detector out looking for old stuff. Not just

By: Candy L Lindsey l Recreation & Sports l July 07, 2012 lViews: 293

Many people want to be writers and you may be one of them. In order to make your dream occupation a reality, you need to have a plan. You also need to work on this plan constantly. These tips from a

By: Harriet Hodgson l Writing & Speaking l July 06, 2012 lViews: 439

A divorce attorney is responsible for navigating the process of dissolving a marriage partnership. This attorney will work hard to get their clients an out of court settlement for the division of

By: Antoinette Ayanal Legall June 15, 2012 lViews: 203

Any given law office will usually have a specific subspecialty that they help their clients with in the legal profession. During these tough financial times, law offices have sprouted up or began to

By: Abraham Avotinal Legall June 15, 2012 lViews: 208

This article explores the possible suggestions a bankruptcy attorney might give to his client. It explains the more common options.

By: Abraham Avotinal Legall June 15, 2012 lViews: 208

Not everyone has the ability to be a family attorney. Many would like to be one, but it's a challenging path.

By: Abraham Avotinal Legall June 14, 2012 lViews: 161

Making plans to deal with your estate or trusts while you're still able is a step in the right direction. That's why you need to work with a wills attorney in order to help guide you through the

By: Andrew Strattonl Legall June 14, 2012 lViews: 159

Anyone who has ever watched syndicated talk shows knows that it is a cinch to get a DNA test. Here are some of the common questions about the process.

By: Abraham Avotinal Legall June 14, 2012 lViews: 177

Discuss this Article

comments powered by Disqus