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buying house: exchange-completion date gap

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Hi We are in process of buying a house.. sellers say that they can exchange contract anytime but want completion date as tentative mid-feb. Now, when we exchange contract does it specifically ment… Read More
dhanepud Avatar
5m, 2w agoPosted 5 months, 2 weeks ago
Hi
We are in process of buying a house.. sellers say that they can exchange contract anytime but want completion date as tentative mid-feb.
Now, when we exchange contract does it specifically mentions completion date? If yes, how binding is this completion date? Can seller overstay or will they pay for overstay?

How much gap should we try to keep between exchange & completion date?

& when is first mortgage payment, one month from exchange or completion date?

Thanks in advance
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dhanepud Avatar
5m, 2w agoPosted 5 months, 2 weeks ago
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#1
dhanepud

Hi
We are in process of buying a house.. sellers say that they can exchange contract anytime but want completion date as tentative mid-feb.
Now, when we exchange contract does it specifically mentions completion date? If yes, how binding is this completion date? Can seller overstay or will they pay for overstay?
How much gap should we try to keep between exchange & completion date?
& when is first mortgage payment, one month from exchange or completion date?
Thanks in advance

With all respect, I suggest that you ask your lawyer. There are many would-be experts in these here forums, but most, I think, are not experts and only think they are.
#2
Usually 6 weeks. Mortgage should come out the following month.
#3
It's all negotiable so far as dates but the contract must have a date for completion. It's common to have "or earlier by agreement " or on a certain number of days notice. There are remedies for not completing on time but a bit slow.

Usual one month between exchange and completion but can be any period. Buyer must buy after exchange so should insure property.

Mortgage starts on completion but actual payment date will not necessarily be 1 month after, ask lender if you have a preferred date.
#4
exchange asap as no contract until exchange and they can back out.
agree on a completion and get on with life.
#5
Once you exchange you need to provide house insurance on the house you are buying so I'd try and complete within 2 weeks of exchanging.

Buying and selling houses should be a lot simpler than it is.
#6
Exchange is when you agree the purchase. Completion is when the money changes hands and the house is yours. First mortgage payment will therefore be due a month thereafter.
#7
I understand that you are nervous about your house purchase ,hence asking many questions on here . Although some on here may have the relevant knowledge ,many don't , but still like to post dubious "advice" . You are making the most important purchase of your life , you are paying solicitors and estate agents a fortune (the experts ) . Rely on their expert advice (after all you are paying through the nose for it) .
#8
You can't over stay, as you put it. We've just moved and that question came up.
#9
The completion date is set when you exchange and all parties have to agree on the date, there's no real standard gap between the two. You *can* exchange and complete on the same day but solicitors hate that and not worth that hassle. Once a completion date is agreed and signed in the exchange of contracts it is legally binding and there is supposed to be a financial penalty for not completing on that date ..... BUT it would be up to you to take court action .... nothing is certain until the money is in the bank
#10
Exchange and completion can happen on the same day, as mentioned, if you want but usual to have a week or more wait. Same day is risky as any delays in money transfers etc screw everything up. Completion date is set in contract and legally binding so you can't exchange without setting one and whilst you can over stay you can incur massive charges etc. Pulling out after exchange is also possible but massively expensive.

Saying this though I would join the others and say ask your conveyors.

Once you exchange you need to insure the property even though you won't move in until completion. Mortgage starts from completion as that is when money is transfered between the parties involved.



Edited By: CyDoNiA on Jan 08, 2017 21:14
#11
u can choose the date of exchange and completion solicitors may know a lot about this stuff but they can be a pain in the bum cause a lot of delays and usually they choose when they want completion and exhange done. why is everyone saying u need to have insurance at exchange if u haven't paid and aren't living there the property isn't urs so pointless. if ur worried about them not leaving at a specific date maybe u should put it into the contract that give solicitor a bit more work to do for there money.
#12
I dont remember ever exchanging without a fixed completion date. There are financial penalty for them over staying if you wish to sue.

Mortgage monies from the bank gets paid at completion. At exchange you pay the deposit from your own money. I think it is recommended 6 weeks between exchange and completion for moving arrangements etc but can be a lot shorter if the property is empty and you dont have much stuff to move, if at all.
#13
muddassarsardar
u can choose the date of exchange and completion solicitors may know a lot about this stuff but they can be a pain in the bum cause a lot of delays and usually they choose when they want completion and exhange done. why is everyone saying u need to have insurance at exchange if u haven't paid and aren't living there the property isn't urs so pointless. if ur worried about them not leaving at a specific date maybe u should put it into the contract that give solicitor a bit more work to do for there money.

No it isn't yours, but when you exchange contracts you enter into a legally binding contract to buy that house. If it were to burn down immediately after you have exchanged you are then still locked into a contract to buy, what may now be, a worthless house.
#14
but u could still pull out or not indeed with hefty possibly hefty fees may I say. as if it did burn down the mortgage people probably wouldn't give the money over any in that case.
#15
muddassarsardar
but u could still pull out or not indeed with hefty possibly hefty fees may I say. as if it did burn down the mortgage people probably wouldn't give the money over any in that case.

You have to insure the property yourself after exchange so the insurer will pay out in this event.

You cant get out of buying the house. Contract law states that you must put the claimant in the same position they would have been had you not default. So any shortfall from this position, including costs will land at your door.

Not a transaction where you can mess around. Changing your mind after exchnge is not usually an option because it is not a smack on the hand and a parking fixed penalty ticket that you will get for defaulting.
#16
What are the risk for long gap between contract exchange & completion? Our seller is asking more than a month. What is our risk in that case? What if they damage anything during this gap?

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