One of the first questions people ask when it comes to selling a house is: “when do I get the money?”. At times it can feel like the conveyancing process drags on forever, and leaves many people wondering when they will receive the funds from a house sale.
22nd March, 2022
One of the first questions people ask when it comes to selling a house is: “when do I get the money?”. At times it can feel like the conveyancing process drags on forever, and leaves many people wondering when they will receive the funds from a house sale. If this is a question that you’ve found yourself asking then look no further, you’re in the right place.
In this article we’re going to tell you everything you need to know about when you’ll receive the funds after a house sale. We’ll explain at what stage funds are transferred during a house sale, including who holds the deposit and what the completion statement is. We’ll then cover how long after completion you get the funds from selling your house and how you can get the funds from selling your house faster.
Looking for the answer to a particular question such as are solicitors allowed to hold the funds from your house sale? Or how long does it take for the solicitor to release the funds after selling your house? Use our menu to navigate easily. If you have more time on your hands then read on for our entire guide.
Many house sellers wonder how the money will actually hit their account once they sell their house. It’s not as simple as just receiving a cheque from the buyer! A house sale goes through a few steps from offer until completion. The house first has to go under offer. Then, once an offer is accepted, the house is sold subject to contract or ‘SSTC’.
The two parties will then exchange on the property (meaning that the sale is legally binding). A deposit is typically paid by the buyer at this point (usually 10% of the agreed sale price). But it’s not over yet! The buyer may still want to wait until they receive the results of surveys and property searches, as this may influence the final sale price.
Once all of these details have been ironed out the sale moves to ‘completion’. At this stage, your conveyancer will receive funds from the buyer’s solicitor, and make payment to you. This comes with a completion statement, detailing all expenses, and is usually paid via bank transfer to an account that you nominate.
When do you get the deposit when selling a house?
When the two parties involved in the house sale ‘exchange contracts’ there is usually a 10% deposit paid by the buyer. This isn’t always the case, but this is the point at which the sale becomes legally binding. As the seller, you don’t actually receive the deposit money until the sale completes. This is the last stage of the moving house process, and it is when the keys are handed over and the house is ready for the buyer to move in.
So what happens if the buyer fails to complete on the house sale? Well the seller will still receive the deposit that was paid to their conveyancer on exchange. There may also be an agreed completion date in the contracts. If this date is exceeded then the seller is also entitled to interest on the deposit. The amount of interest will also be detailed in the contracts.
What is a completion statement?
A completion statement is basically a summary of everything that is paid out of sale proceeds. The completion statement details all disbursements that need to be paid, all legal costs that have been incurred, estate agency fees, and admin fees (things like bank transfer fees, etc.).
The amount of fees and the complexity of the completion statement may affect how long it takes for you to receive funds. For example, if you are paying off house repayments or the money for your onward purchase is to be taken from the completion money, then the statement will be longer and it may take longer to receive funds. Completion statements are typically more straightforward when you’re selling your property to a cash house buyer service.
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How long after completion do you get the funds from selling your house?
On the day of completion, your conveyancing solicitor will receive the funds for the sale amount from the buyer’s conveyancer. If there is a mortgage to pay, then your solicitor will also request a ‘Redemption Certificate’, which is prorated to the day of completion to clear any outstanding mortgage on the property.
Your conveyancer will then issue a receipt for the entire sum, and confirm that the balance has been received from the buyer’s solicitor. Your solicitor will then hold the funds from your house sale. They should release the funds (less the outstanding balance on the completion statement) to you via bank transfer on the same day as completion.
How can I get the funds from selling my house faster?
We get it, selling your house can be a long and arduous process. Property chains, fall-throughs, and other complexities often leave sellers wondering how they can sell their house fast and receive the cash faster. We’ve outlined three methods for you to sell your house fast below. Check out our complete guides on each for more information.
Selling your house at auction can be a great way to get a faster house sale and receive the funds more quickly. Completion timelines tend to be shorter than with a traditional estate agency. When selling via traditional auction, the buyer pays a deposit immediately once they place the winning bid.
There will then be a set time period (usually 28 days) for the buyer to complete. If the buyer is unable to meet the deadline then they will lose their deposit, and there are typically penalty fees to pay on top. This speeds up the process from exchange to completion and reduces the likelihood that your sale will fall through.
Keep in mind that whilst there are definitely advantages to selling at auction, it isn’t for all properties. There are auction fees to consider, there aren’t any guarantees that your house will actually sell at auction, and you don’t have complete control over the sale price. So make sure that this is the right route for you before proceeding.
Selling your house via part exchange is where you use the value of your current house as a payment towards another property. This is almost always in exchange for new build properties, and is offered by most large house developers.
Keep in mind that whilst part exchanging will help you achieve a quick house sale, you won’t actually receive any of the funds for selling your house. This is because you’re effectively using the value of your house as a part payment for the new build property that you’re buying.
Cash House Buyer
A great way to get funds from selling your house quickly is by using a cash house buyer like SmoothSale. Cash house buyers typically purchase your house for cash using their own funds, and can complete a sale within 7-14 days. Bear in mind that you won’t get market value for your property, you’ll usually receive between 80-85%. However, once you factor in the agency fees, conveyancing costs, time spent on the market, and mortgage payments, the difference is often not significant at all.
If you’re thinking about selling your house for cash then get in touch with SmoothSale for a no obligation cash offer. One of our property specialists will be in touch with you within an hour to give you a free appraisal and explain the process. We buy any house, in any condition and the service is completely fee free. We’ll even cover your legal costs! Why not give us a call today on 0800 368 8952.
Can I expedite the process of receiving funds? You can expedite the process by choosing faster payment methods, ensuring a smooth title search, and working with efficient professionals.
What happens if there are issues with the title? Title issues can delay the process. It’s crucial to resolve these issues promptly to speed up fund disbursement.
Is it possible to get funds immediately after the sale? In some cases, funds can be disbursed within hours, especially if all parties are well-prepared.
How can I track the progress of the fund disbursement? Stay in touch with your real estate agent, attorney, or escrow officer for updates on the disbursement process.
Can I choose the method of receiving funds? Yes, you can choose the payment method, but it’s essential to consider the associated processing times.
What should I do if I have an urgent need for the funds? Communicate your urgency with all parties involved and try to expedite the process where possible.