Exchange of contracts is the point in a property purchase when both buyer and seller become legally committed to the sale. Before exchange, either side can generally walk away without penalty. After exchange, pulling out means breaking a legal contract — and usually losing your deposit.

In short: exchange is the legal commitment; completion (usually 1–4 weeks later) is when you actually get the keys.

What has to happen before exchange

Your conveyancing solicitor won't recommend exchanging until a set of checks and documents are in place. In a typical purchase, that includes:

  • Local authority, water and environmental searches returned and reviewed
  • Your mortgage offer issued in full (if you're borrowing)
  • Buildings survey completed and any issues addressed
  • The draft contract agreed between both solicitors
  • Your deposit ready and cleared in your solicitor's client account
  • Everyone in the chain, if there is one, ready at the same time

What actually happens at exchange

Once both sides are ready, the solicitors speak by phone and formally exchange contracts — reading over identical clauses to confirm they match, then confirming exchange has taken place. At this point:

  • The contract becomes legally binding on both parties
  • A completion date is fixed (agreed in advance, then locked in)
  • Your deposit, typically 10% of the purchase price, is released to the seller's solicitor
  • You should arrange buildings insurance to start from this date, not completion

What happens between exchange and completion

This gap can range from the same day to several weeks, though 1–2 weeks is common. During this period, your solicitor prepares the final transfer paperwork, requests mortgage funds from your lender, and carries out final pre-completion searches to confirm nothing has changed.

Can I still pull out after exchange?

Technically yes, but it comes at a cost. Withdrawing after exchange is a breach of contract, and you would typically forfeit your deposit and could be liable for the seller's additional costs and losses.

What if the chain isn't ready?

If you're part of a chain, everyone usually needs to exchange simultaneously so no one is left legally committed without the others. This is often why exchange dates can move at short notice — it only takes one link in the chain to cause a delay.

This guide is for general information only and does not constitute legal advice. Conveyancing timelines and requirements can vary by transaction — always confirm the specifics with your own solicitor or licensed conveyancer.