The gap between exchange and completion is usually any time between one and four weeks. Although in more recent years the gap has become shorter and is normally between one to two weeks. However, with this being the norm, what is the minimum time between exchange and completion? Let’s take a look…
What is the minimum time between exchange and completion in brief:
The minimum time between exchange and completion is to exchange and complete on the same day. But the time between exchange and completion is usually between one to four weeks. But it’s whatever the parties involved agree to. There’s usually a gap, which allows everyone enough time to pack and organise their move.
The shortest time between exchange and completion
The length of time between exchange and completion is whatever the parties who are involved agree to.
The gap between exchange and completion is usually anywhere between one to four weeks. This gap allows everyone involved enough time to organise removals, to change utilities and notify friends and others about a change of address.
Plus to allow time for the finances to be drawn down. Once contracts have been exchanged it allows both the buyers and the sellers to confirm their removal date and to start packing.
But there doesn’t need to be a gap, as the minimum time between exchange and completion can be zero days. Or in other words a same-day exchange and completion.
Why is there a gap between exchange and completion?
There is usually a gap between the exchange of contracts and the completion date to allow time for parties involved to make various arrangements. This includes to start packing and confirm the removal date with the removal company. Plus it gives time to change utilities and to sort out address changes. This gap also allows time for mortgage funds to be drawn down in preparation of the completion date.
The gap between exchange and completion will be contained in the legal contract. The completion date is set for a specific date in the contract. Completion usually takes place at around midday and 2pm on that date.
With that being said, this article is about what the minimum time is between exchange and completion. Let’s take a look at this.
What is the minimum time between exchange and completion in more detail?
There is no minimum time between exchange and completion. In fact you can have a same-day exchange and completion. Which is where contracts are exchanged and completion takes place on the same day. In fact solicitors are recommending during the current Coronavirus-Covid-19 pandemic to exchange and complete on the same day. This is to avoid any of the problems that may arise during the ordinary intervening gap. Things can go wrong between exchange and completion when there’s a gap. Therefore by having no gap at all, in theory nothing can go wrong.
The downside of exchanging and completion on the same day is this doesn’t allow time for organising removals and so on. Also, with a same-day exchange and completion there’s no deposit paid on exchange followed by the balance on completion. Which means that the complete funds need to be ready to transfer on the day of exchange in order for the contract to be completed on the same day. Same-day exchange and completions are usually offered and used by investors to speed up the process of purchase. Investors don’t have moving arrangements to make.
If you are planning on a same-day exchange and completion, you’ll need to make sure everything is organised prior to exchange. This is because you won’t have the luxury of a gap between exchange of contracts and completion to organise or arrange anything.
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