Buying or selling a home involves more than just agreeing on a price and exchanging keys. The process includes several legal and financial steps that ensure everything is accounted for before ownership officially changes hands. One of the most important documents in this journey is the completion statement.
For many first-time buyers and even seasoned sellers, the completion statement can appear confusing, filled with figures, adjustments, and solicitor’s costs. However, understanding it is crucial to ensure you know exactly where your money is going—or what you will receive.
This guide will explain what a completion statement is, why it matters, and what to look out for as either a buyer or a seller. Whether you’re working directly with solicitors or seeking advice from professionals such as letting agents in Nottingham City, this breakdown will help you approach your property transaction with confidence.
What Is a Completion Statement?
A completion statement is a financial breakdown prepared by your solicitor or conveyancer, showing all the money that needs to be paid or received to finalise the property transaction. Think of it as the property world’s version of an itemised bill.
For buyers, it sets out:
- The purchase price of the property.
- Any deposit already paid.
- Stamp Duty Land Tax (SDLT) where applicable.
- Solicitor’s fees and disbursements (e.g., Land Registry charges).
- Adjustments such as prepaid service charges or council tax.
For sellers, it details:
- The agreed sale price.
- Estate agent’s commission.
- Mortgage redemption amounts (if repaying an existing mortgage).
- Solicitor’s fees and other costs.
- The final sum due to the seller once deductions are made.
Understanding this document ensures there are no surprises at the final stage of the transaction.
Myth 1: “The Completion Statement Is Just a Formality”
Some believe the completion statement is a box-ticking exercise that doesn’t need much attention.
The reality: The completion statement is far from a formality. It sets out every financial detail of the transaction and ensures that all parties receive or pay the correct amount. If figures are overlooked, it can cause delays, disputes, or even prevent completion from happening on time.
For example, if a buyer underpays because of a missing calculation, the seller may refuse to release the keys until the shortfall is corrected.
Myth 2: “Only Buyers Need a Completion Statement”
Another misconception is that only those purchasing a home need this document.
The reality: Both buyers and sellers receive a completion statement from their solicitor. While the details differ, both sides need clarity: buyers to confirm their financial obligations, and sellers to see what they will walk away with after deductions.
This transparency helps prevent misunderstandings and ensures that everyone involved knows exactly where they stand financially.
Myth 3: “The Figures Are Always Final and Cannot Change”
It’s easy to assume that once you’ve seen your completion statement, the numbers won’t move.
The reality: Figures on a completion statement can sometimes change before the completion date. For instance:
- If the completion date shifts, adjustments to prepaid bills such as council tax or ground rent may need recalculating.
- Final mortgage interest amounts can change depending on the date funds are transferred.
- Additional legal costs might arise if complications occur.
While changes are usually minor, it’s wise to double-check the final version of your completion statement before transferring funds.
Myth 4: “The Completion Statement Only Covers the Purchase Price”
Some buyers and sellers mistakenly think the completion statement only reflects the property’s agreed price.
The reality: The completion statement includes a wide range of charges and adjustments beyond the sale price. These may include:
- Stamp Duty Land Tax for buyers.
- Estate agent fees for sellers.
- Bank transfer charges.
- Land Registry fees.
- Rent or service charge apportionments if the property is leasehold.
This means that the “headline” price is rarely the same as the amount you actually pay or receive at the end.
Why the Completion Statement Matters
The completion statement serves several important purposes:
- Transparency – It ensures both parties can clearly see all financial transactions, reducing the risk of disputes.
- Budgeting – Buyers know the exact amount to transfer to their solicitor in time for completion, avoiding delays.
- Accuracy – Sellers know how much they will receive after deductions, helping them plan their next move.
- Legal Compliance – It ensures all taxes, fees, and payments are properly accounted for, keeping the process legally sound.
Without this document, buyers and sellers could easily miscalculate their finances.
Practical Tips for Reviewing Your Completion Statement
- Check every figure carefully: Compare it against your original mortgage offer, agreed sale price, or fee quotes.
- Ask questions: If something looks unclear—such as an unfamiliar disbursement—ask your solicitor to explain.
- Review timing: Make sure the dates used for council tax, mortgage interest, or rent adjustments are correct.
- Plan transfers early: Banks often have transfer limits; ensure funds can be sent in time for completion day.
Professionals such as solicitors and conveyancers will do most of the calculations for you, but taking a proactive role will give you peace of mind.
The Role of Property Professionals
While solicitors prepare completion statements, other property experts are often involved in the wider process. For instance, letting agents in Nottingham City may advise landlords selling investment properties on likely costs, or guide buyers considering properties with existing tenants. Estate agents also help sellers understand how much commission will be deducted from the sale price, a key line on the completion statement.
By working with experienced professionals, both buyers and sellers can navigate the financial details of a property transaction with greater confidence.
Conclusion
A completion statement may seem like just another piece of paperwork in the complex process of buying or selling a home, but in reality, it’s one of the most important documents you’ll receive. It details every financial aspect of the transaction, from purchase price and mortgage redemption to taxes, fees, and adjustments.
Far from being a simple formality, the completion statement ensures that both buyers and sellers know exactly where they stand before the keys change hands. By carefully reviewing the document, asking questions, and working with trusted professionals such as solicitors and letting agents in Nottingham City, you can avoid surprises and approach completion day with confidence.
In the end, understanding your completion statement means you’ll step into your new chapter—whether buying or selling—fully informed and financially prepared.
