UK
Exchange of contracts
Exchange of contracts is the point in England and Wales when the buyer and seller become legally bound to complete the sale, usually on an agreed completion date. The buyer pays a deposit.
Also called Exchange.
Before and after
Until exchange, an accepted offer can fall through. After exchange, pulling out normally means losing the deposit or being pursued for the loss. The estate agent does not exchange the contracts. The solicitors do, once the mortgage offer, searches, enquiries and the chain are ready.
What to tell the vendor
Tell them the date the solicitors have given you, and that it is the solicitors’ date, not yours. Do not promise exchange on a day you have not confirmed. After exchange, the completion date is the date that matters for keys, removals and the invoice.
Questions
What does Exchange of contracts mean?
Exchange of contracts is the point in England and Wales when the buyer and seller become legally bound to complete the sale, usually on an agreed completion date. The buyer pays a deposit.
General information for agency staff, not legal advice. Rules and local practice change. Check the official source before you rely on a definition in a client letter.