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 stages in the conveyancing process. In England and Wales, exchange is the point at which the agreement to buy and sell becomes legally binding. 

Before exchange, either party can usually withdraw from the transaction. After exchange, withdrawing can have serious legal and financial consequences. A buyer may lose some or all of the deposit and could face further costs, while a seller who fails to complete may face a claim for breach of contract. 

Exchange is also the stage at which the completion date is agreed. Before exchange takes place, the key legal work should be sufficiently complete, including the review of the contract and title, property searches, replies to enquiries and any mortgage arrangements.

A solicitor’s role is to make sure the client understands the legal position before becoming bound. Rushing exchange before important issues have been resolved can create significant problems later.

At MJV Solicitors, the focus is on making sure clients reach exchange with a clear understanding of the transaction and confidence that the necessary legal checks have been completed.

For more information about the conveyancing process and how MJV Solicitors can help, read our complete guide to Residential Conveyancing.

Exchange of Contracts FAQ

Can I pull out after exchange?
Yes, but withdrawing after exchange can have serious legal and financial consequences. A buyer may lose some or all of the deposit and could face further claims, while a seller who fails to complete may be sued for breach of contract.
Is exchange the same as completion?
No. Exchange of contracts is when the agreement becomes legally binding. Completion is the later stage when the purchase money is transferred, legal ownership changes hands and the buyer can usually collect the keys.
How long after exchange is completion?
There is no fixed period. Completion is often agreed for around one to two weeks after exchange, but it can be sooner or later depending on the transaction and what the parties agree.