Conveyancing
Buying your first home? What’s the difference between Exchange and Completion?
You found the property, your offer has been accepted, paperwork is completed… and then you hear from your solicitor ‘We are working towards the exchange and completion’. If you are first time buyer, you’ll probably hear these two words and think what do they actually mean?
Exchange – you are legally committed
When contracts are exchanged, the sale becomes legally binding. At this point, you generally can’t simply change your mind without potentially facing serious financial consequences. The completion date is also agreed, so you know when you will officially get the keys.
Completion – the house is yours!
On completion day, your solicitor/conveyancer send the purchase money to seller’s solicitor. Once the money has been received, purchase is completed. That’s when you officially become the owner and can collect the keys.
Exchange and completion are not necessarily on the same day. There is often a period between the two, giving everyone time to prepare to moving day.
There can be a lot happening behind the scenes before you reach exchange – enquires, searches, mortgage arrangements, documents and funds all need to come together.
Knowing what each stage means can make the process feel a little less overwhelming.
