Exchange of contracts meaning
Exchange of contracts is the point at which a property sale in England becomes legally binding. The two conveyancers confirm identical signed contracts, the completion date is fixed, and the buyer pays a deposit, commonly up to 10 per cent. After exchange, withdrawing is a breach of contract.
Exchange of contracts is one of the terms you are likely to meet when buying or selling a home in England. Here is what it means in plain English, and where it fits into your move.
What changes immediately
The completion date becomes a legal commitment, and the buyer usually becomes responsible for insuring the property from the moment of exchange, even though they do not yet own it.
Key takeaway
Exchange of contracts is the point at which a property sale in England becomes legally binding. The two conveyancers confirm identical signed contracts, the completion date is fixed, and the buyer pays a deposit, commonly up to 10 per cent. After exchange, withdrawing is a breach of contract.
Frequently asked questions
How long after exchange is completion?
One to two weeks is common in England, though it can be the same day or several weeks by agreement, depending on what suits everyone in the chain.
Moving day checklist
Exchange starts the countdown, and MyMoveMate turns it into a dated checklist.
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