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Exchange of contracts is one of the most important stages of buying a home. It’s the point at which the purchase becomes legally binding, meaning both the buyer and seller are committed to completing the transaction on the agreed completion date. Before contracts are exchanged, your conveyancer will ensure the necessary legal work has been completed, your mortgage offer is in place and you’re happy to proceed. In this guide, we’ll explain what happens during exchange of contracts and what to expect afterwards.
Exchange of contracts is when the purchase becomes legally binding.
You'll usually agree a completion date before contracts are exchanged.
Your deposit is normally transferred at the point of exchange.
After exchange, there may be legal and financial consequences if either party withdraws.
Completion usually takes place after exchange, although the timescale varies.
How HTG Mortgages Can Help
At HTG Mortgages, I work with over 120 lenders across the UK, meaning we have access to a wide range of mortgage products to suit all types of borrowers. Whether you’re a first-time buyer or looking to remortgage, we can help you determine how much you can borrow and find the right mortgage for your circumstances.
We also provide ongoing support, regularly checking your options after your mortgage is secured, ensuring that you never miss out on a lower rate.
What Is Exchange of Contracts?
Exchange of contracts is the stage where the buyer’s and seller’s signed contracts are formally exchanged by their conveyancers. Once this happens, both parties are legally committed to completing the sale on the agreed date.
What Happens Before Exchange?
Before contracts are exchanged, several important steps are usually completed, including:
- Mortgage offer issued
- Property searches completed
- Enquiries answered
- Survey considered (if arranged)
- Buildings insurance organised where appropriate
- Completion date agreed
Your conveyancer will confirm when everything is ready.
What Happens During Exchange?
Your conveyancer and the seller’s conveyancer formally exchange signed contracts. The transaction then becomes legally binding, and the agreed completion date is confirmed.
Speak to an expert
Whether you’re buying your first home, moving house or remortgaging, HTG Mortgages is here to make the process as simple and stress-free as possible. I’ll compare mortgages from over 120 lenders, guide you every step of the way and help you find the right mortgage for your circumstances.
Do I Pay My Deposit at Exchange?
In many purchases, the deposit is transferred at exchange of contracts, although the exact arrangements can vary depending on the transaction and advice from your conveyancer.
Can I Pull Out After Exchange?
Once contracts have been exchanged, withdrawing from the purchase can have legal and financial consequences. If you’re unsure about any aspect of the transaction, it’s important to discuss this with your conveyancer before exchange takes place.
How Long Is It Between Exchange and Completion?
There isn’t a standard timescale. Some transactions complete on the same day as exchange, while others complete days or weeks later. The agreed timetable depends on the circumstances of everyone involved in the property chain.
What Should I Do After Exchange?
After exchange, you can begin preparing for completion by arranging removals, notifying utility providers, organising insurance where appropriate and getting ready to collect the keys on completion day.
What Happens Next?
The next major milestone is completion day, when the purchase funds are transferred, ownership changes hands and you can usually collect the keys to your new home.
Need Personal Mortgage Advice?
Every buyer’s situation is different. While this guide explains the general rules, the right mortgage for you depends on your income, deposit, credit history and future plans. If you’d like tailored advice, I’m here to help, with whole-of-market coverage.
