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Contract Exchange

What is Exchange of Contracts?

Exchange of contracts is the point at which the sale becomes legally binding. Both parties are committed to the transaction, and neither can withdraw without significant financial penalties.

Key Points:

The sale becomes legally binding
Deposit is paid (usually 10%)
Completion date is set
Insurance responsibility transfers to buyer

Before Exchange Checklist

1. Legal Requirements

All searches completed
Contract terms agreed
Property title checked
Local authority enquiries satisfied

2. Financial Arrangements

Mortgage offer in place
Deposit funds available
Buildings insurance arranged
Survey completed

3. Practical Matters

Completion date agreed
Removal arrangements planned
Final property inspection completed
All parties ready to proceed

The Exchange Process

Your Solicitor Will:

Agree completion date with seller's solicitor
Prepare final contract documents
Exchange contracts with seller's solicitor
Transfer deposit to seller's solicitor

You Need To:

Ensure deposit is ready
Sign final contract
Arrange buildings insurance
Begin planning for completion

After Exchange

Once contracts are exchanged, focus on preparing for completion. This includes:

Finalizing mortgage arrangements
Organizing removals
Setting up utilities
Planning your move-in day

Important: After exchange, failing to complete the purchase will result in losing your deposit and possible legal action. Ensure you're fully committed before exchanging contracts.