COMPLETION

Completion is the final stage of the process of buying or selling a property. It is the point at which the buyer takes possession of the property and the seller receives the balance of the purchase price.

Before completion can take place, the following steps must usually have been completed:

• Exchange of contracts: This is the point at which the buyer and seller are legally bound to complete the transaction.

• Payment of the deposit: The buyer will typically pay an exchange deposit (usually 10% of the purchase price) to the seller at the point of exchange.

• Final searches: The buyer’s solicitor will carry out any necessary final searches on the property.

• Preparation of the completion statement: The completion statement is a document that sets out the final financial details of the sale or purchase. It is prepared by the solicitors acting for the buyer or seller and is provided to the other party’s solicitors on the day of completion.

Once these steps have been completed, the parties can proceed to completion. On the day of completion, the buyer’s solicitor will transfer the balance of the purchase price to the seller’s solicitor. The seller’s solicitor will then release the keys to the property to the buyer, and the buyer will take possession of the property.