When do I receive funds from a house sale in the UK?
A house sale is only final after the sale ‘completes’. In other words, you’ll get paid the full amount for the house when the sale moves to ‘completion’.
But does this happen on completion day or after it, and what can you do to get your funds faster?
Let’s find out.
The buyer is required to put down a deposit when the parties exchange contracts and the deal becomes legally binding.
At this point, they usually have to pay around 10% of the property’s value, but the conveyancer can negotiate a smaller amount if the buyer is taking out a mortgage or can only provide the funds at a later date.
If the buyer, for any reason, fails to complete the purchase, the seller is entitled to the deposit. Furthermore, if there was a pre-agreed completion date in the contracts, which cannot be met, the seller may receive interest on the deposit value.
Completion day is the final stage of the selling process when the seller’s solicitor receives the funds from the house sale.
On completion day, the buyer transfers the funds to their solicitor, who then sends the money to the seller’s solicitor.
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Once the seller’s solicitor confirms that they have received the funds, the sale is considered to be ‘complete’. The seller will then officially transfer ownership of the property to the buyer and provide them with the keys to the house, through their conveyancer.
If you’re thinking, ‘I sold the house. When do I get the money?’ The answer is: Probably on the same day.
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The seller’s solicitor will hold the funds until they complete all the legal checks and confirm that any outstanding payments stated in the pre-agreed ‘completion statement’ are covered.
This is usually done on completion day, so you should receive the money transfer on the same day if the buyer used a bank transfer.
However, if your solicitor is holding the funds after completion, it usually has to do with external factors:
A completion statement is a document issued by a conveyancer to the seller before a house sale is complete.
This statement details everything that needs to be paid out of the sale proceeds, including legal costs, estate agent fees, and admin fees. It also outlines the exact amount that you’ll receive at the end of the house completion via the money transfer.
The complexity of the statement may affect when you will receive your funds.
For example, if you’re paying off house repayments or a proportion of the funds goes towards a new purchase, the completion statement will be longer.
Selling a house is a long process that incurs a variety of fees from start to completion, meaning you won’t receive the full amount that the buyer pays for the house.
Your solicitor will take out any legal, estate agent, and mortgage fees before sending you the remaining funds. They’ll also use that money to cover removal costs and conveyancing fees.
Other costs include:
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While selling a house can be a long and exhausting process, there are a few alternatives that can help speed up the sale, including:
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A property sale is a lengthy process, and getting your money can take days and even weeks from the time it’s declared as being ‘under offer’.
Typically, sellers get paid on the day of the completion of the sale. This is when the buyer sends the funds to their solicitor, who then transfers them into your solicitor’s account. Your solicitor should be able to send you the money on the same day, but there are external factors that can delay the process.
Once your solicitor receives the funds from the house sale, they’ll conduct certain checks and pay off any fees that are owed before they send the remaining amount into your bank account. This typically happens on the same day when they receive the funds.
If the solicitor is transferring the funds into your account via a bank transfer, you should receive the money on the same day.
Your solicitor will transfer you the funds from the house sale on completion day via same-day bank transfer, once they cover all the outstanding payments, such as legal fees, estate agent fees, and mortgage fees.
My name is Marija, and I'm a financial writer at DontDisappointMe. Although finance might not be everyone's cup of tea, my 10+ years of working in one of the biggest banks in my country, and my interest in extensive research on everything finance/investment-related, have made me somewhat of an expert in the field (if I do say so myself). No longer having the passion to work in a corporate setting, I decided that I couldn't let all of this knowledge go to waste so I started writing. And, here I am! Today I try to share my knowledge with my audience in the hopes of making this topic as simple and interesting as possible. In my leisure time, I like spending time with my family and travelling to new locations.