What Happens at Exchange of Contracts?

We handle residential conveyancing transactions on a daily basis, including freehold, leasehold and new-build properties across the Fylde Coast.

Exchange of contracts is one of the most important milestones in the conveyancing process. In England and Wales, exchange is the point at which the transaction becomes legally binding.

Before exchange, either party can withdraw without penalty. After exchange, if the buyer pulls out, they will usually lose their deposit. If the seller withdraws, they may face legal action for breach of contract.

Exchange is also when the completion date is fixed, giving certainty about when the move will take place. Because of the legal consequences, all searches, enquiries, and mortgage arrangements should be finalised before exchange.

A solicitor’s role is to ensure clients fully understand their obligations and risks before committing. Rushing exchange without proper checks can lead to serious problems later.

Exchange of Contracts FAQ

Can I pull out after exchange?
Only with serious financial and legal consequences.
Is exchange the same as completion?
No, exchange makes the deal binding; completion is when ownership transfers.
How long after exchange is completion?
Often one to two weeks, but this can vary.