As your sale progresses, one question is never far away:
"When will I receive my money?"
Whether you're buying another property, paying off a mortgage or simply waiting for the funds to reach your bank account, it's completely understandable to want to know when the sale proceeds will arrive.
The good news is that, in most cases, the money is transferred on the day of completion. However, there are a few important steps that need to happen before the funds can be sent to you.
The Short Answer
Once your sale has completed, the buyer's conveyancer sends the purchase money to your conveyancer.
Your conveyancer will then:
- Redeem any mortgage secured against the property (if applicable).
- Pay any agreed estate agent's fees (where instructed).
- Deduct any agreed legal costs and disbursements.
- Transfer the remaining balance of the sale proceeds to your nominated bank account.
We'll provide you with a Completion Statement showing exactly how the money has been calculated before completion takes place.
The Explanation
Completion takes place when the buyer's conveyancer transfers the purchase money to your conveyancer.
Once those funds have been safely received, your conveyancer will carry out several important checks before sending your money to you.
This usually includes:
- Confirming that completion has taken place.
- Redeeming any mortgage on the property.
- Paying any agreed fees and disbursements.
- Preparing the final completion statement.
- Transferring your remaining sale proceeds by bank transfer.
The exact time you receive the funds will depend on when completion takes place, how quickly the banking system processes the transfer and whether there are any other transactions linked to your sale.
If you're also buying another property on the same day, your sale proceeds will usually be used towards your purchase before any remaining balance is transferred to you.
Common Questions
Will I receive all of the sale price?
Not always.
If you have a mortgage, it will normally need to be repaid from the sale proceeds. Your legal fees, agreed disbursements and any other authorised payments will also be deducted before the remaining balance is transferred to you.
Can the money be sent to someone else's bank account?
For your security, we'll discuss your payment instructions with you during the transaction and explain any verification requirements before completion.
How will I know how much I'm receiving?
Before completion, we'll provide you with a Completion Statement showing the sale price, any deductions and the balance due to you.
Will I receive the money on the same day?
In most cases, yes.
Once completion has taken place and we've completed the necessary financial checks, we'll arrange for the balance due to you to be transferred as soon as possible.
Top Tip
If your bank account details change during the transaction, let your conveyancer know as soon as possible.
For your protection, we may need to verify any changes before completion.
Did You Know?
Your conveyancer doesn't simply receive the money and press "send."
Several financial checks must be completed first to ensure the correct amounts are paid to the correct people before the balance is transferred to you.
Common Misconception
"The sale money comes straight to me."
Not quite.
The purchase money is first received by your conveyancer, who must deal with any mortgage redemption, agreed payments and legal formalities before sending the remaining balance to you.
The MA Lawyers Approach
At MA Lawyers, we understand that completion day is often the day you've been waiting for.
Before completion, we'll provide you with a clear Completion Statement so you know exactly what to expect.
Once completion has taken place and the necessary financial checks have been completed, we'll arrange for your sale proceeds to be transferred to your nominated bank account as soon as possible.
If you're using the funds to buy another property, we'll ensure the money is transferred as part of your onward purchase in accordance with your instructions.
Related Articles
- Why Do I Have to Complete So Many Forms?
- What Happens If My Buyer Pulls Out?
- Why Is My Sale Taking So Long?
- What Happens on Completion Day? (Buying a Property)