First-time buyer's guide

Exchanging contracts and completing

You’re almost there as these are the last stages in the legal process. Exchanging contracts means that the buyer and the seller are both legally committed to the sale. Once you have completed, you legally own your new home and you can move in.

Preparing for exchange of contracts

Once your conveyancer has all the details they need, they'll send you a pre-contract report and a copy of the registered title. If you are happy with everything, you need to approve the contract by signing it.

The exchange

When your conveyancer has your signed contract and the seller’s conveyancer has the seller’s signed contract, the two will swap or ‘exchange’ contracts. Your conveyancer will also transfer your deposit (the money that you pay at exchange) to the seller’s conveyancer from your own funds and arrange a date for completion. If you pull out after this point, you could lose your deposit.

Preparing for completion

Once you have exchanged contracts, your conveyancer will make the final preparations for completion. Make sure that you ask them exactly what you need to do – and when.

Land Registry – Your conveyancer will have sent you a copy of registered title for the property at the start of the process. Now they will do a final check to make sure that nothing has changed.

Transfer deed – This is the document that records you as the new legal landowner in the Land Registry. Your conveyancer will prepare this before completion, and send it to the seller’s conveyancer.

Money transfers – Your conveyancer will also make the final arrangements for payment, including receiving the mortgage money for you from your lender.

Final accounts – Your conveyancer will prepare the final accounts for you. These will include details of any further money needed from you to complete i.e. your conveyancer will arrange for the mortgage money to be transferred to the seller's conveyancer on the agreed completion date, but you will need to provide the difference if it’s not a 100% mortgage – less the amount you’ve already paid as deposit. Make sure you have enough money to cover these costs and that it is in an easily accessible account.

Tip

Once you have exchanged contracts, you are responsible for the property’s buildings insurance. Make sure you are
covered in case anything happens before completion.

Completion day

You’ll think that it will never come, but it does. A lot will happen on completion day, so it’s a good idea to take time off work or set a few hours aside to make sure everything goes smoothly.

• Your solicitor will transfer the payment to the seller. If you have a mortgage, this money will have been sent from your
lender to your solicitor.
• Once the full payment has been transferred, you will receive the keys to the property and your solicitor will receive the
transfer deed and originals of any other important documents.
• Your solicitor will complete a tax return to pay the stamp duty land tax, which you will need to sign before they send it
off. They will then arrange for the Land Registry to record you as the owner and to register the lender’s interest as a
mortgagee (you are the mortgagor).

Smile, you’re a home owner.