Selling your home can be a long process. From putting the property on the market to finding a buyer, to exchanging contracts, it can seem like it takes an age for you to finally receive the funds from the sale. But when exactly in the house-selling process will you receive your funds? And how long does it take for your solicitor to release the funds to you? Read on to find out.
When do I receive the deposit?
The deposit will usually need to be paid by the buyer at the exchange of contracts. However, no funds will be transferred until after completion, including the deposit.
There is a period of time between the exchange of contracts and completion day that lasts between 7 and 28 days. During this time, the completion statements will be sent out to verify what has been paid and what is left to pay.
If the buyer pulls out of the sale after the exchange of contracts, the seller will get to keep the deposit.
When do I receive the money from the house sale?
The final funds for the property sale will be sent by the buyer’s solicitor to the seller’s solicitor on completion day. The seller’s solicitor will then confirm with the seller and the keys will be given to the buyer. However, the seller may not receive the funds on the same day.
The seller’s solicitor will have to deduct certain payments from the money. This will include legal fees, any house repayments that are owed and any other costs. Only after all these fees have been sorted out can the solicitor then transfer the remainder of the funds to the seller.
How long does it take for the solicitors to release the funds?
How long it takes solicitors to release the funds to the seller will vary depending on each situation. Sometimes the funds can be released on the same day, but in other circumstances, it might take a few days for your solicitor to be able to pass on the money. The solicitor is obliged to pass the funds on as promptly as possible and not hold onto them for longer than required.
Your completion statement will give you an idea of how long it will take. If you have a lot of items that require paying, it will take longer for the solicitor to sort out each payment and then transfer you the remaining funds. If you don’t have many outgoings on the completion statement, you will likely receive your funds quicker. The time of day the solicitor receives the funds from the buyer could also affect how long it takes for them to reach you. If the buyer doesn’t transfer the money until late in the day, your solicitor might not have time to pay the outstanding payments and get the money to you. This could be extended further if your completion day is on a Friday and the solicitor is not able to finish the payments before the end of the day. You might not then receive the funds until the following Monday.
If the buyer pays by bank transfer, the solicitor will usually receive the funds the same day and so will be able to release the money to the seller quickly. However, sometimes the buyer might pay by cheque, in which case it will take a few days for the solicitor to receive the funds. There will then be additional time for the solicitor to finalise any outgoing payments that are due.
How are the fund transferred from a house sale?
The solicitor will typically pay the funds to you via a bank transfer. They will usually use CHAPS banking system which will transfer the funds the same day as they are released. If you are splitting the amount with other parties, the solicitor will be able to transfer the required amounts to each person. You will need to agree this with your solicitor in advance and make sure they have everyone’s bank details to ensure the money is released quickly.
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