What happens if completion is delayed

Read why some transactions won't complete in time. What happens on completion day. Read by: , What happens on completion day of any house or flat sale is the same, however there are a number of things that can go wrong or that cause delays leading to you not moving in until late in the day, or sometimes not at all.

Once received the seller's solicitor releases the keys to the buyer. Buyer's solicitor receives mortgage from the mortgage lender and the balance to complete from the buyer click on Purchase Completion Statement Explained to find out more about the various money flows. Seller releases keys to the buyer click to find out what happens post-completion. With so little to do you may be surprised to find out there can be a number of issues that often arise on the day of completion so we have set out these below and provide solutions of what to do:.

You may find these two articles of use - What to do on exchanging contracts and How long between exchange and completion? You can choose to complete on any day that both the seller and the buyer agree to read more on how long between exchange and completion.

Most people choose Friday as their completion day so they can tie in moving in with the weekend; maximising the time to unpack and get their life in order. However, with Friday being in such high demand, you can find the cost of removals are alot more than any other day of the week. If you have the capacity to do so, choosing a Monday or a Tuesday to complete can save on removal costs and your solicitor is less likely to be busy.

Another issue of completing on a Friday is that if you do fail to complete, you have to wait until Monday before you can complete which means the breaching party is covering the other party's costs over the weekend. You can read more about the costs of failing to complete here. All too often conveyancing solicitors draw down the mortgage funds for the day of completion which could mean you end up waiting for your mortgage lender to release the mortgage money.

You should always ask your solicitor to draw down the mortgage advance the day before completion. Delays in receiving the completion money from the buyer is often a challenge as buyers want to hold onto their money accruing the interest for as long as possible. The best advice is to make sure you send your completion monies the day before you are supposed to complete.

The completion monies include:. Read more about what is included in your Completion Statement. You solicitor can't complete without being in receipt of the signed transfer documents from you; some won't even exchange without this.

If you are selling and haven't received your transfer document to sign it normally is sent with your contract then chase your solicitor for it - and never return this in normal post, always send it recorded delivery. Waiting for your buyer to send their completion money can feel very frustrating as you have no way to speed the process up. What all too often happens is the bottom of the chain fails to draw down mortgage monies the day before completion or the buyer hasn't sent in their completion monies.

Delays at the bank. With such large amounts of money changing hands, banks could take some time to process the payments. Removals problems. With so many contract and banking shenanigans going on in the background, the logistics of actually getting your belongings from A to B can seem like an afterthought. But if your removals company drops the ball, you might be physically unable to move. Sellers pulling a fast one. Occasionally, some sellers might pack up and move, taking with them some of the fixtures and fittings which the buyer assumed would be included in the price of the house.

This problem could be avoided by being crystal clear from the very beginning about what is and is not included in the price of a house. Assume nothing, especially the goodwill of the sellers and the solicitors acting on their behalf. Completion day is just one of the many facets of buying a new home, something which many people say could have been the most stressful process of their lives thus far. By law, your expenses should be paid for by the seller of the home you were moving into.

Problems can often occur on the day of completion, such as funds not being transferred in time. Negotiation through your solicitor and patience may again be your best option for a quick solution. Another way to avoid potential completion date problems altogether is part exchanging your present property with a housebuilder for a brand new home.

For instance, you don't have to worry about selling your present property and there's no housebuying chain. You simply move when your new home is ready. Many housebuilders welcome this type of buying process. The seller requires more time to find a new property on the market to move into. Why might a delayed completion date after exchanging contracts cause problems? They include: When you sell a property, you have a legal obligation to hand the property over in the same state that it was in when the contract was exchanged to the person who is going to buy it.

Any issues or defects which occur between the time you exchanged the contract and the time you complete will be your responsibility, and you will need to pay to have rectifications carried out. The seller may decide that they no longer wish to sell the property after an extensive hold-up.

In legal terms, exchanging contracts should seal the deal. However, in some cases, they may try returning the deposit. Some signs of a potential problem include somebody at the property such as a tenant refusing to leave or a sign that the finance from the sale will be insufficient to pay off the mortgage on the house. Your solicitor will offer you advice about your legal position and help you to get things moving.

Speak to the estate agents quickly about possible delays. Contact the buyer and explain the possible difficulties so they can stay in the loop. You can help to prevent any hold-ups by checking everything is in order and ready for moving on the day that you agree for completing the sale.

Again, your conveyancing team will be able to give you the necessary advice about this. If the buyer is at fault for the hold-up for example, if they lack the necessary finance to pay the balance of the purchase price , you have rights as the seller.