The final milestone along your property purchase and/or sale journey is completion. Once you’ve exchanged contracts, committing to the deal, you’ll have agreed to a completion date (or moving date). Shortly after this point, you’ll also receive an up-to-date completion statement which is a ‘bill’ that breaks down all the final costs associated with the purchase and/or sale of a property.
What does a completion statement include?
The completion statement itemises all the financial transactions incoming and outgoing on the transaction and indicates whether there is any money required from you to complete or, alternatively, if there will be a balance due back to you following completion.
For example, if you’re buying a property it will include all the money you need to pay, e.g:
• The Purchase Price
• Conveyancing Fees
• Stamp Duty Land Tax
It will also include all the money you have already paid or will receive, e.g:
• Mortgage Advance (the amount you are borrowing from your mortgage lender)
• Deposit already paid
This isn’t a definitive list of things to expect on a completion statement. Variables such as if the property is a freehold, leasehold and/or new-build property will affect some of the standard fees. Furthermore, if you’re selling a property your completion statement would include an estate agents fee.
Some of the fees associated with your purchase and/or sale will be paid upfront, e.g. search fees. The remainder is required to be paid in full prior to either exchange or completion.
When do you receive the completion statement?
Typically, you will receive a completion statement between exchange of contracts and completion. This will allow you time to check through all the expenses thoroughly and to ensure that all costs match your expectations.
It is important to raise any queries with your conveyancing solicitor as soon as you spot them. For example, if they have missed a transaction from the bill you should notify them as quickly as possible.
Could anything change on the completion statement?
Yes, although you may not expect any of the costs to change after exchange of contracts this is entirely possible.
Take the recent Stamp Duty Land Tax (SDLT) holiday, for example. As the change came into immediate effect, buyers that were already in the process would have suddenly benefitted from significant savings towards their property move.
If you’re moving home and need an experienced conveyancer to guide you through your property transaction get an instant conveyancing quote today.