Exchange of Contracts
The legal moment a property purchase becomes binding for both parties.
Exchange of contracts is when both solicitors formally swap signed contracts and the buyer's deposit (typically 10% of the purchase price) is transferred. After exchange, both parties are legally committed — pulling out means losing the deposit and potentially being sued. A completion date is set at exchange, typically 1-2 weeks later. Until exchange, either side can still withdraw without penalty.
Related terms
- Completion Day →
- Completion Statement →
- Mortgage Deed →
- Exchange & Completion — full guide →
This glossary entry is a brief definition. For the full practical walkthrough, see the guide above.
- Full Glossary →
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