What is the difference between exchange and completion?
- Exchange is when the sale between seller and buyer becomes legally binding - but the buyer does not yet own the property
- Completion is when the title ownership of the property is transferred by the seller, to the buyer
When does exchange happen at property auctions?
At auction, this will usually be upon the fall of the gavel, after which documentation is signed by the purchaser and the deposit is taken by the auctioneer as the agent for the seller. Once contracts are exchanged, the buyer is committed to purchasing the property.
When does completion happen at property auctions?
Normally, completion takes place up to 28 days later from the date of the exchange. This is different from selling via estate agents, which can take up to 6 months.
The specific required completion date will be within the contract. This is the date on which title ownership of the property is transferred by the seller to the buyer, and the buyer takes possession of the property having paid over the balance of the monies. Once completion is confirmed by the solicitors, the buyer would then be able to collect the keys and move in.