Exchange and complete on the same day?

Yes, it is possible to exchange and complete on the same day but most conveyancers will not advise this due to the many things which could possibly go wrong. When you exchange and complete on the same day you may leave your self open to too many liabilities.

Conveyancing is a process undertaken by a legal property expert to ensure everything is legally fine with the home you are buying.

Exchanging and completing on the same day isn’t common except with buy to let landlords who trade with cash. This is because there isn’t any mortgage lender involved to further complicate the issue.

What are the risks when exchanging and completing on the same day?

  • Moving costs if paid upfront e.g the cost of moving vans

  • Accommodation cost if you are selling or exchanging your current property on the same day and your seller backs out of the deal and doesn’t exchange you could potentially end up homeless. This is the same case if the seller is in a property chain. By requesting an exchange and completion on the same day you are putting increased pressure on all parties involved.

  • Your seller might take of the scenario and make increased demands such as taking furniture that may have already been agreed to be left at the property.

  • There is also the risk that the completion will not happen due to the many things the seller may need to do such as clean the property, get gas and electricity metres, arrange a moving fan for themselves etc.

  • Exchanging and completing contracts on the same day will not give you time to consider any new developments with the property.

  • Most mortgage lenders will also insist you have insurance from the moment you exchange contracts.

There are also many third-party considerations to take into account when considering exchanging contracts and competing on the same day.

Third party considerations when exchanging and completing on the same day:

The mortgage lender:

Most Mortgage lenders will require that you request for the funds to be sent on the day contracts are exchanged but most mortgage lenders will take about 5 days to process the request from the day youhave requested the funds. This means they will expect you to complete on or after the fifth day after the contracts have been exchanged.

Even if you were able to find a mortgage lender who could send the funds on the same day they are requested or before an exchange of contracts. Most mortgage lenders will also require that you immediately send the funds back if you do not complete on the day you said you were going to complete. This means if anything goes wrong you will have to send the mortgage lender the funds back and incur processing and transfer fees when you request the money again.

Note: You will be responsible for paying interest on the mortgage from the day the money is released. This means if you don’t complete on the day stipulated and have to return the money back to the mortgage lender then you will be paying for a mortgage on a house you haven’t even completed on.

Your current landlord:

If you currently rent you will need to give notice to your landlord so your tenancy ends just in time for you to complete. If you don’t end up figuring this out properly you could end up paying for a mortgage and rent.

The local council:

If you need to move into an area where parking is limited and you need to park your van for hours when unloading then you may need to get permission from the local council.

Your conveyancer:

Most solicitors will not agree to exchange and completion on the same day as there may be a risk of money laundering or mortgage fraud and hence they will like to wait a few days first before proceeding.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.