Completion
The legal transfer of ownership when all conditions are satisfied and the transaction formally closes.
Full Definition
Completion (also called "closing") is the point at which a transaction is finalised and legal ownership transfers from seller to buyer. This is typically when:
- The purchase price is paid (or payment mechanics initiated)
- Share certificates or asset title documents are transferred
- All conditions precedent have been satisfied or waived
- Board resolutions are passed
- Completion documents are signed and delivered
Completion mechanics in the UK: 1. Completion meeting (often virtual) where documents are exchanged 2. Funds transferred via solicitor undertakings 3. Companies House filings submitted (for share purchases) 4. Stamp duty paid on shares (0.5%) 5. Post-completion obligations begin
Simultaneous vs deferred completion:
- Simultaneous: Exchange and completion happen together
- Split exchange/completion: Gap between signing and closing (common for regulated deals or complex conditions)
Completion accounts may be prepared to adjust the final price based on actual financial position at completion.
Related Terms
Completion Accounts
Financial statements prepared at completion to calculate final adjustments to the purchase price.
Conditions Precedent
Specific requirements that must be satisfied before a transaction can complete.
Signing
The execution of the definitive transaction agreements, which may or may not coincide with completion.