Exchange of contracts is the legal commitment point in buying or selling a property. Once contracts are exchanged, you're legally bound to complete the transaction.
This guide explains what exchange means, what happens before and during exchange, and the timeline to completion.
What does exchange of contracts mean?
Exchanging contracts means both parties formally swap signed legal documents that transfer property ownership. Your solicitor exchanges contracts with the other party's solicitor on your behalf.
Once exchanged, you're legally obliged to complete the transaction. Backing out after exchange means forfeiting your deposit and facing potential legal action for breach of contract.
The contract sets out:
- The agreed sale price
- What's included in the sale (fixtures and fittings)
- The completion date
- Any special conditions agreed between buyer and seller
How does exchanging contracts differ from completion?
Exchange and completion are two separate stages:
Exchange of contracts - The point where you become legally committed to the transaction. You pay your deposit (typically 10% of the purchase price) and set a binding completion date.
Completion - The point where the remaining money transfers, legal ownership changes hands, and you collect the keys. This typically happens 7-14 days after exchange.
What happens before exchange of contracts?
Your solicitor handles substantial legal work before exchange can happen. This all forms part of the conveyancing process:
Property searches
- Local Authority search - Building regulations, planning permissions, nearby development schemes, conservation area status
- Drainage and Water search - Mains water connection, sewerage services, utilities location
- Environmental search - Local industry impact, contaminated land, radon gas risk, ground stability, flood risk
- Additional searches - Depending on location and property type: coal mining, Japanese knotweed, HS2 impact, Chancel Liability, flood risk assessment
Legal documentation
- Verify completion of forms - Property Information Form (TA6) and Fixtures and Fittings form (TA10) from your seller
- Prepare the contract - The legal document covering ownership transfer
- Review contract terms - Check all details are correct before signing
Set the completion date
You must agree a completion date before exchange. While you can exchange and complete on the same day, this creates unnecessary stress and may incur additional fees. Most people leave 7-14 days between exchange and completion.
What you need in place before exchange
Before your solicitor can exchange contracts, you must have:
Financial arrangements confirmed
- Mortgage offer received and accepted
- Deposit funds (typically 10% of purchase price) available
- Buildings insurance arranged from exchange date
Property checks completed
- Survey report received and any issues resolved with seller
- All searches returned and reviewed
- Any warranties, certificates and guarantees provided (including EPC)
Paperwork finalised
- Contract read, understood and signed
- All forms (TA6, TA10) completed accurately
- Any queries about the property resolved
Understanding what happens after your offer is accepted helps you prepare for this stage of the process.
How long does the exchange of contracts take?
The exchange itself takes just a few hours on the day - usually between 10am and midday. Your solicitor coordinates with the other party's solicitor (and any chain solicitors) via phone to confirm contracts are identical and formally exchange them.
However, exchange happens towards the end of the conveyancing process, which typically takes 8-12 weeks from offer acceptance to exchange.
Once you're ready to exchange, your solicitor will propose an exchange date and coordinate with all parties to ensure everyone can exchange simultaneously.
What can delay exchange of contracts?
Common factors that can hold up exchange:
- Problems with the property title
- Issues with the buyer's mortgage application
- Missing information from the seller
- Delays receiving local authority searches
- Problems found in the building survey
- Leasehold property complications
- Property chain delays
- Probate sale complexities
- New build not yet completed
Special considerations for First-Time Buyers
If you're a first-time buyer, be aware of these additional points at exchange:
- Government schemes - If you're using Help to Buy, Lifetime ISA, or other government schemes, your solicitor handles the specific requirements at exchange.
- Gifted deposits - Ensure all gifted deposit letters and anti-money laundering checks are complete before exchange.
- No chain advantage - Being chain-free gives you more flexibility with exchange and completion dates.
- Stamp duty relief - Your solicitor ensures you benefit from first-time buyer stamp duty relief where applicable
What happens on exchange of contracts?
On exchange day, your solicitor contacts the other party's solicitor to exchange signed contracts. If you're in a property chain, all solicitors coordinate to exchange simultaneously.
The process:
- Solicitors confirm all contracts are identical
- Contracts are formally exchanged (usually by phone)
- Completion date is legally binding from this point
- Your deposit transfers from your solicitor to the seller's solicitor
- You receive confirmation that exchange has completed
Exchange usually happens between 10am and midday, depending on your solicitor's schedule and any chain coordination needed.
Once exchanged, you can confirm arrangements with removal companies and start planning your move for completion day.
How long does it take between exchange and completion?
The average time between exchange and completion is 7 days, though this can vary from same-day completion to several weeks depending on circumstances.
Most completions happen on Fridays to help buyers, sellers, removal companies and solicitors coordinate more easily.
You agree the completion date before exchange, and once contracts are exchanged, this date becomes legally binding.
Get expert help with your conveyancing
Our conveyancing solicitors handle the entire exchange process, from coordinating searches to exchanging contracts on your behalf.
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Frequently asked question about exchange of contracts
Can I pull out after exchange of contracts?
You can, but it will cost you. If you withdraw after exchange, you forfeit your deposit (typically 10% of the purchase price) and the seller can pursue you for any additional losses. This is why exchange is treated as the point of no return so only exchange when you're completely certain.
What happens if the seller pulls out after exchange?
The seller is equally bound by the contract. If they withdraw, you're entitled to your deposit back in full and can sue them for breach of contract, including any additional costs you've incurred. In practice, sellers rarely pull out after exchange precisely because of these consequences.
Do I need to be present when contracts are exchanged?
No. Exchange is handled entirely by your solicitor, usually over the phone with the other party's solicitor. You don't need to be present or available at a specific time and your solicitor will confirm once it's done.
Can the completion date be changed after exchange?
Not easily. The completion date is legally binding once contracts are exchanged. Both parties would need to agree to any change, and this would typically require a formal amendment to the contract. Your solicitor would need to handle this, and the other party is under no obligation to agree.
What is simultaneous exchange and completion?
This is where exchange and completion happen on the same day, meaning you become legally committed and receive the keys at the same time. It's possible but risky and if anything goes wrong on the day, you have no legal protection. It's more common in cash purchases or where both parties know each other well.
What if I haven't arranged buildings insurance before exchange?
You need buildings insurance in place from exchange, not completion. From the moment contracts are exchanged, the risk of the property passes to you as the buyer, even though you don't yet own it. If something happened to the property between exchange and completion without insurance, you would still be legally obliged to complete the purchase.