Specialist conveyancing advice from John W Davies Solicitors
The exchange of contracts and the completion of a property sale and/or purchase are two very important, but different stages of the conveyancing process.
There is no set timescale between exchange and completion, but most clients prefer them to be at least one week apart from each other. It can also occur a few days before or even simultaneously (on the same day). They form a legally binding agreement between the buyer and seller of a property.
The exchange of contracts
Once both the seller and purchaser are happy to proceed, the identical contracts are formally exchanged via the solicitors. When the contracts are exchanged and signed, the parties are then legally committed to the transaction and can be penalised should they pull out.
Once you have given authority to exchange contracts and the solicitor is happy with the legal title, they will request the deposit and funds in readiness for exchange. The date for completion must be agreed by all parties in the chain before exchange can take place.
Completion occurs when a property is officially transferred from seller to purchaser. The completion date is always specified and agreed within the contracts which are exchanged prior to completion taking place. On the day of completion, the purchaser’s solicitor transfers monies to the seller’s solicitor.
Once the seller’s solicitor receives this money, a telephone call is made to the estate agents confirming that the keys can be released. They are then ready to be collected by the new owner.
John W Davies Solicitors are experts in the field of conveyancing.
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