Buying and selling a house is a long and complex matter. When it comes to completion day, the whole process should be finalised as this is the day when the seller receives the money and the buyer receives the keys. Completion day usually takes place around one to four weeks after the sale has been agreed. Although the actual exchange of money and keys is a simple process, the conveyancing process is a complex one.
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Before completion can take place the conveyancing solicitor has to check a number of things. Consider some things to look out for in the run up to completion day.
Buyer requests access to the property
A buyer may request access to the property before completion day. Try and avoid this as it can have implications for the stamp duty land tax that has to be paid within 30 days of the effective date. The effective date is taken as the date when most of the transaction has been carried out. This will generally be completion date but if the buyer wants to access the property before completion date, then that date may be taken as the effective date. You should bear this in mind as it could affect the day that stamp duty land tax becomes payable.
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Mortgage conditions and finance
The buyer’s solicitor needs to get the monies from the lender and make sure all conditions have been met. The seller’s solicitor needs to get a Redemption Certificate calculated to the day of completion if there’s a mortgage to sell, to show proof of how much of the mortgage has been paid.
Staying in touch
As conveyancing is such a complicated process, it’s important to stay in touch with your conveyancing solicitor and keep a tally of all associated costs. A fixed fee conveyancing arrangement helps to stay on top of things. Use a reputable company if you’re wondering what is fixed fee conveyancing? and find out how it can help you.
Completion statement
Both solicitors must prepare a completion statement to show how much money is still owed by the buyer and all outstanding invoices should be settled by completion day. Using a fixed fee conveyancing arrangement helps to keep on track of the conveyancing costs. When both solicitors have checked all documents, the buyer’s solicitor will inform the lender that they can transfer the money.
Confirmation of payment
Once all the documents have been checked and the balance has been transferred and all solicitors’ fees have been paid, then the solicitors can let the estate agents know that the process has been completed and the keys can be handed over.
