What is Completion Date?
If you are going through the process of renting or buying a commercial property, or any property for that matter, you will keep hearing estate agents and solicitors uttering the words Completion Date. But what exactly is it?
Well, in short it’s the end of the process. It is the day you get the keys to the property. It usually takes place within one month after the contracts have been exchanged. But, there are quite a few things that have to be in order before you get to that juncture. So lets take a look at the processes leading up to that point and find out exactly what completion date means when buying or renting a property.
After your solicitor has carried out all of the inspections and necessary checks and both parties are satisfied with the contracts, and assurances have been given that the money is available to transfer, the contracts can be exchanged. At any time preceding the exchange of the contracts either party can decide not to go through with the purchase without incurring a penalty. As previously stated, the completion is usually within one month after the exchange of contract. Once the funds have been transferred the contract is completed.
From a landlords perspective there are associated documents that are usually submitted to a tenant before the lease is signed, such as a warning notice from the landlord to exclude security of tenure. This ensures that the tenant does not have the right to stay in the building after the lease expires..
What Happens After Completion Date?
Once the lease has been finalised the tenant may need to pay stamp duty. This is dependant on several factors such as the length of the lease and the cost of the rent. It is important that the landlord confirms that the tenant has paid any stamp duty, as although the burden to pay such a tax falls with the tenant, it could cause problems for the landlord in the future if it has not been honoured as the Land Registry will not register the lease against the property title.
This is why it is essential to instruct an experienced solicitor to act on your behalf, as they will go through an entire legal checklist of necessary searches and contractual obligations, giving you more time to concentrate on your business.