Legal Q&A: can we exchange and complete on the same day if the house we're buying is empty?

We're buying a house from the estate of a deceased woman and would like to get in and start work. Can we exchange and complete on the same day rather than having a long delay?
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Fiona McNulty7 May 2019

Question: We're buying a house from the estate of a deceased woman. It’s empty and we want to get in and do work.

Can we exchange and complete on the same day, rather than have a long delay between exchange and completion?

Answer: If your seller agrees you can exchange and complete simultaneously. Usually, once contracts are exchanged there is a binding agreement between seller and buyer, who, with their solicitors, make the completion arrangements.

Simultaneous exchange and completion requires these arrangements to be in place even though there is no binding contract.

For example, if you are getting mortgage funding your solicitor will draw down funds from your lender in readiness for completion.

With no binding agreement there is no certainty the seller will exchange and complete the sale on the agreed date, or at all. If they let you down, you’ll likely face wasted removal fees.

If mortgage funds have to be returned to your lender, you must pay any interest from the date of release of the funds to the date of return, and also for a telegraphic fee for sending the fees back.

To avoid such risk you could exchange with completion perhaps five days or so later, depending on your lender’s requirements for drawing down.

These answers can only be a very brief commentary on the issues raised and should not be relied on as legal advice. No liability is accepted for such reliance. If you have similar issues, you should obtain advice from a solicitor.

If you have a question for Fiona McNulty, please email legalsolutions@standard.co.uk or write to Legal Solutions, Homes & Property, Evening Standard, 2 Derry Street, W8 5EE. Questions cannot be answered individually, but we will try to feature them here. Fiona McNulty is a solicitor specialising in residential property.

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