Navigating the intricacies of property transactions can be daunting, especially if you’re not immersed in the industry. Let’s demystify two terms often tangled up: the ‘exchange date’ and the ‘completion date’.
Although they may sound interchangeable, they serve distinct purposes. The exchange date marks the moment when the purchaser signs the contract and submits the deposit—typically 10%, sometimes negotiated down to 5%. It’s the pivotal point where you formally commit to the property purchase.
Now, onto the completion date—this signifies when the vendor receives the remaining purchase price, officially transferring legal ownership of the property to you, the purchaser. It’s also known as the settlement date, but hey, potato, potahto!
Typically, there’s a buffer between exchange and completion, often around 42 days, allowing both parties ample time to tie up loose ends. From sorting out loan documents to arranging alternate accommodation, there’s a checklist to tick off!
Oh, and here’s a fun fact—properties usually come with a cooling-off period, usually 5 or 10 business days, just in case you need a breather.
But here’s the clincher: the exchange date is when the ink hits the paper, not when the contracts are set in stone. Yep, it’s a little quirk that’s tripped up a few eager buyers!
So, as you navigate the property market in Crows Nest, Sydney, remember these key dates, and you’ll be breezing through like a seasoned pro. And if you ever need a guiding hand through the mortgage maze, you know where to find us at SFP Financial!
