Exact Answer: 7-28 days
Buying a new home can be very stressful as it follows a very structured process that involves many documents. Once you’ve set your eyes on a home and have contacted the seller. Once you’ve been accepted, the first step is to sign contracts and exchange them.
The exchange of contracts was once done when the seller and the buyer meet up to exchange the contracts. But as time has passed, this exchange of contracts typically occurs through the phone.
Completion is the last step in the sale of a property. This is when the house is officially and legally in the buyer’s possession.
How Long After Signing Contract Is Completion?
|Duration between signing contracts and completion||Reasons for choosing this duration|
|Same day||Apt for cash buyers, faster completion|
|3 days||Faster completion, easier for vacant properties|
|1-2 weeks||Apt for cash buyers, first-time buyers, constant movers; enough time to pack and organize; less stress|
|3-4 weeks||Less stress, more time to pack and organize|
Signing a contract will make the process legally binding. Both parties including the seller and the buyer will be required to follow their respective contracts and finalize the purchase/sale of the property.
After both the parties have signed the contract, they will exchange the contracts, typically through the phone. Here, they will ensure that each of them possesses the necessary legal documents for the transaction.
After this, they will confirm the date of completion, typically 7 to 28 days after the date of signing the contracts. Also, they will discuss the terms of the purchase/sale, and the terms for depositing the funds. They will also confirm that all the necessary legal paperwork is set and ready for completion.
It also clarifies that if any of the parties retract after the exchanging of contracts, then they would face penalties because they broke a legally bound contract.
Completion describes the stage in which the property is finally in the buyer’s possession legally. The buyer receives the keys to their new home.
This is the last step of this transaction. The buyer transfers the funds for the house, to the seller. The title documents will be transferred along with ownership of the house, to the buyer.
The buyer can now move into the house.
The duration between signing the contracts and completion varies from place to place. But the typical duration is 7 to 28 days. The most preferred duration is 2 weeks. But it can also be done on the very same day or even three days after the signing of contracts.
Why Does It Take That Long For Completion After Signing Contract?
They give a period of 7 to 28 days after the signing of contracts for completion primarily because the parties can make arrangements for packing and moving.
This time allows the buyer to book a removals company, which normally asks for a deposit, to be confirmed. A removals company is in charge of packing and transporting your luggage and belongings. They ensure that all your belongings arrive safely without suffering any damage.
In addition, this time allows one to transfer their services, like television services, internet, and broadband services.
Also, it allows one to inform all their friends, relatives, and family about their change of address. It will also allow them to redirect their deliveries and mail.
Moreover, working people can use this time to book time off of work, so they can get ready to pack their belonging, and move homes.
If the property is vacant or if the buyer is willing to pay with cash, then this waiting time is shortened so it is easier for both parties to reach completion quicker.
There are certain perks to having a longer waiting time between signing contracts and completion. If you have more time, then you can relax and pack your belongings without a hurry. You can get all your documents and finances in order without a rush. Therefore, you will be under less stress during this time.
However, if completion is right after signing the contracts and exchanging them, then you will be under a lot more stress as you will have very little time to pack up and move.
Therefore, the traditional waiting period between signing contracts and completion is between 7 and 28 days. But people often prefer a period of 2 weeks after the contract signing for the completion of the sale.
This time can be mutually decided by both the seller and the buyer beforehand. This allows buyers to get their finances in order, to pay for the property, and pack for moving day. Similarly, it gives the seller time to pack up the house so the buyer can move in after completion.
Note that the sale is not legally binding unless the signing and exchange of contracts have taken place.