Exchange of contracts is where the contracts are signed and swapped between the buyer and seller, meaning the sale has been legally agreed. It's one of the last steps when buying a house and is also the point where you will need to pay your deposit to your conveyancer.
During the exchange of contracts, the solicitor or conveyancer from each side will read out the contract over the phone in a recorded conversation. They will make sure the contracts are the same and then post them to each other.
How long does it take for solicitors to exchange contracts on the day?
How long does exchange of contracts take on the day? The actual exchange process can take a few hours. Each solicitor reads out their client's version of the contract, and then the contracts are exchanged by post. The transfer of funds can also take several hours.
When you exchange contracts, both the buyer and the seller sign identical contracts and the deal becomes legally binding. While completion day is when property ownership transfers from the seller to the buyer. Find our more in our guides Exchange of contracts explained.
Once each solicitor is satisfied with the searches, enquiries, and contracts, and once mortgages are confirmed and everyone agrees on a completion date, the exchange takes place. In a chain, all solicitors must be ready at the same time to exchange contracts simultaneously.
Exchange is when you sign the contract and put the deposit down on the house. At this stage, you're legally bound to buy the property. Completion is when ownership is officially transferred to the buyer. This is when you'll get the keys to the property and can move into your new home.
Exchange of contracts is where the contracts are signed and swapped between the buyer and seller, meaning the sale has been legally agreed. It's one of the last steps when buying a house and is also the point where you will need to pay your deposit to your conveyancer.
What are the risks of exchange and completion same day?
What are the risks of simultaneous exchange and completion? There are also risks to this approach, including: no contract is in place at the point completion, meaning buyers and sellers could pull out at the last minute. you may end up paying for costly removals if you try to cancel at too short notice.
Despite this seemingly ample period between exchange and completion, packing up a whole house and everything in it can take a lot longer than most people expect. For this reason, it is advisable to start organising and thinking about packing a short while before exchange of contracts.
If either party pulls out of the deal after exchange it is a breach of contract. So, if a buyer pulls out they will lose their deposit which is usually 10% of the sale price. If a seller refuses to proceed after exchange of contracts, they are liable for the buyer's costs including legal, mortgage and survey fees.
Should you view the property again before exchange? The simple answer is yes. Buying a property is a very important decision both financially and legally so it is essential that you are 100% sure about the purchase before exchange of contracts.
No! Exchange of Contracts is when the contract for sale becomes binding, and when the completion date is set. Completion is the actual day of your move. The gap between exchange and completion can be anything (typically) from the same day of exchange of contracts through to a few weeks.
In theory, nothing can go wrong once the contracts have been exchanged. The idea is that all issues will have been ironed out by solicitors and valuers in the run-up to the exchange, and that once the contracts are signed, sealed and exchanged, nothing is left to worry about.
How long after exchanging contracts is completion?
Usually, the time between exchange and completion is around 1-2 weeks. This allows enough time to arrange for things such as removals and to organise everything for the move.
Do I need to be present for exchange of contracts?
It is called “exchange of contracts” because the buyer and seller each sign an identical copy of the contract and these copies are then formally exchanged by their conveyancers. You do not need to be present at this time.
How long after exchanging contracts do you get keys?
It usually takes between 7 and 28 days from exchange to completion. But it can be longer depending on what date you or the seller wants. For example, if the seller has a different date to move into their new home.
A: When determining what order to pack when moving, a good rule of thumb is to start with the attic, garage, basement or other storage spaces. Then, you can move to the guest bedroom, office, and dining room. Finally, pack the more used rooms of the house, like the bedrooms, kitchen, and den.
Before the exchange can happen, you'll need to make sure of the following: You have a mortgage offer from your lender and all of the conditions have been met. You've agreed what's included in your offer (fixtures and fittings). You've signed your copy of the contract.
The interval between exchange and completion is usually between 1-2 weeks, although this is dependent on the complexity of your chain. If you're a buyer who's arranged a mortgage to fund your house purchase, lenders usually require at least five working days to release the funds.
How often do house sales fall through after exchange?
It might come as a surprise, but roughly one in three property transactions in England and Wales don't complete. Most of these happen after an offer is accepted but before contracts are exchanged — the point when a sale becomes legally binding. Until then, either party can walk away without legal penalty.
Without a chain, completion day is often a lot simpler. You will be able to finalise the completion process as soon as your funds have been received and confirmed by the seller's conveyancer. The seller can hand over keys to the buyer, and both parties will have finalised the transaction.
When buying a house, solicitor's fees should be fully paid either on the exchange of contracts or on completion. Most solicitors will ask for an upfront payment to cover disbursements.
Why do solicitors take so long to exchange contracts?
Solicitor-related delays often stem from communication issues and workload management. Some conveyancing solicitors juggle multiple clients, impacting their response time to your enquiries. If the solicitor fails to reach an exchange or process other factors promptly, it can slow down the entire timeline.
