Exchange of Contracts and Completion

The last few weeks of buying a house involve three closely connected events: exchange of contracts, a short pre-completion period, and finally completion day itself. These are the steps where you go from "offer accepted" to "keys in hand."

This guide covers all three in sequence. Use the links below to jump to any section:

Section 1: Exchange of Contracts — the moment you're legally committed to buy
Section 2: The Completion Statement and Pre-Completion — the final paperwork and funds transfer
Section 3: Completion Day — funds transfer, keys, and moving in

Each section explains what happens, what you need to do, what can go wrong, and when to expect each step.

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Section 1: Exchange of Contracts

Exchange of contracts is the legal point at which both you and the seller are committed to the transaction. Before exchange, either party can walk away without financial penalty. After exchange, walking away means losing your deposit and potentially being sued.

Exchange typically happens 8 to 12 weeks after your offer is accepted, though this varies significantly based on the complexity of the purchase and the responsiveness of both sides.

What Exchange Actually Is

Despite the name, nothing physical is exchanged. It's a legal formality where the two solicitors confirm to each other, usually by phone, that both sides are ready to proceed. They follow a structured script (the "Law Society Formula") that creates a binding contract between the buyer and seller.

The key legal effects of exchange:

Both parties are legally bound. The sale will complete on the agreed date unless both sides mutually agree otherwise.
Your deposit is committed. Typically 10% of the purchase price, held by your solicitor.
The completion date is fixed. You'll agree this at exchange — usually 1 to 2 weeks later, though it can be same-day in urgent cases.
Risk transfers to you. From exchange, the property is effectively "yours" in the sense that you're responsible if anything happens to it. This is why buildings insurance from exchange date is essential.

What You Need Ready Before Exchange

Your solicitor will confirm everything is in place before agreeing to exchange. The key items:

Mortgage offer in place. The lender has issued a formal mortgage offer and you've signed to accept it. Without this, exchange can't happen (unless you're a cash buyer).

Deposit funds with your solicitor. The 10% deposit must be transferred to your solicitor before exchange. They won't exchange without having the money.

Buildings insurance arranged. Cover must start from the exchange date. Most mortgage lenders require this — they want the property insured from the moment you're legally committed. Your solicitor will ask for evidence before exchange.

Report on Title reviewed and accepted. You've read your solicitor's summary of everything they've found about the property and any conditions from your lender, and you're happy to proceed.

Signed contract. You've physically signed (or electronically signed) the contract document, which your solicitor holds.

All enquiries resolved. Every question raised during conveyancing has been answered to your solicitor's satisfaction.

The Deposit

How much?

The standard is 10% of the purchase price. On a £300,000 property, that's £30,000 transferred to your solicitor before exchange.

Can it be less?

In some cases, yes:

5% deposit. Some sellers and their solicitors agree to accept 5% instead of 10%, particularly if you're a first-time buyer with a higher LTV mortgage. This has to be negotiated between the solicitors. Not every seller will agree.

The deposit is separate from your overall deposit. If you're putting down 10% of the purchase price total, all of that becomes the exchange deposit. If you're putting down 20% or more, only 10% (or the agreed lower amount) is paid at exchange, and the rest transfers at completion.

Where does the deposit money sit?

With your solicitor, in their client account, from exchange until completion. It's protected — client money accounts are ring-fenced and insured. On completion, the deposit transfers to the seller's solicitor as part of the purchase price.

Agreeing the Completion Date

Exchange and completion can be:

Simultaneous (same day). Possible but unusual. Used when time is critical — for example, if a chain needs to complete urgently before someone moves abroad. Higher risk because there's no buffer if anything goes wrong.

Short gap (1-3 days). Some buyers want minimum time between exchange and completion. Works for chain-free purchases but leaves little room to fix problems.

Standard gap (1-2 weeks). The most common arrangement. Allows time for final funds to transfer, removals to be arranged, and any last-minute issues to be sorted.

Longer gap (2-4+ weeks). Sometimes needed for complex situations, long chains, or buyer/seller personal circumstances.

The date is negotiated between both solicitors based on what works for both parties. If you're in a chain, the date has to suit everyone in the chain — it's typically dictated by the slowest-moving link.

What Happens on Exchange Day

Exchange usually happens at a specific time agreed in advance. The typical sequence:

Morning: Solicitors on both sides confirm they have everything ready. If you're in a chain, all solicitors in the chain coordinate.

Exchange call: The solicitors phone each other and formally exchange contracts using the agreed Law Society Formula. The call is recorded. This creates the binding contract.

Confirmation: Your solicitor contacts you to confirm exchange has happened. You'll receive written confirmation of the completion date and next steps.

Buildings insurance activates. From this moment, your policy is active on the property.

You don't need to do anything on exchange day itself — all the work is handled by the solicitors. But you should be available by phone in case any last-minute questions arise.

What If Something Goes Wrong Before Exchange?

Chain collapse. If someone in the chain pulls out before exchange, the chain breaks. Everyone's transaction stops. Your solicitor will tell you what's happening and what your options are.

Mortgage withdrawn. Rare but possible — a lender can withdraw a mortgage offer if your circumstances change materially (job loss, significant new debt, credit file issues). If this happens before exchange, you haven't committed yet but you'd lose any upfront costs.

Down-valuation on completion. If your lender revalues the property lower than the purchase price after offer but before exchange, you either need to make up the difference, renegotiate with the seller, or pull out.

Seller pulls out. Before exchange, the seller can walk away without penalty. You lose any upfront costs (searches, survey, solicitor initial fees) but nothing else. This is more common than people think — particularly if the seller receives a higher offer (gazumping).

What If You Want to Pull Out After Exchange?

You'll lose your deposit. The seller is entitled to keep the 10% deposit as compensation for the failed transaction.

You can be sued for damages. If the seller's losses exceed the deposit (because the property takes months to resell at a lower price, for example), they can sue you for the difference.

Your mortgage offer may be affected. Future mortgage applications often ask about failed purchases, and repeated issues can affect lender decisions.

In practice, post-exchange pull-outs are rare because the financial consequences are severe. Most issues that cause purchases to fail come up before exchange precisely because solicitors work hard to identify them.

Section 2: The Completion Statement and Pre-Completion

The period between exchange and completion — typically 1-2 weeks — is where the final paperwork and financial arrangements are made. The centrepiece is the completion statement, a detailed breakdown of every pound going into and out of the transaction.

What Your Solicitor Does During This Period

Requests your mortgage funds. Your solicitor contacts your lender to request the mortgage advance to arrive on completion day. The lender typically releases funds the day before or the morning of completion.

Prepares the completion statement. A detailed breakdown of every cost, fee, and funds movement involved in the transaction.

Requests final funds from you. Whatever balance you need to transfer to make up the full purchase price plus fees.

Prepares pre-completion searches. Last-minute checks to confirm nothing has changed in the Land Registry (such as new charges against the property) since the main searches were done.

Signs the mortgage deed. The legal document that registers the lender's interest in the property. Either sent to you to sign, or signed electronically.

Confirms completion arrangements. Time of completion, how funds will transfer, how keys will be released.

Understanding the Completion Statement

A completion statement shows every penny moving in the transaction. A typical statement for a £300,000 purchase with a £30,000 deposit and a £270,000 mortgage might look like this:

Amounts owed by you (debits)

Item	Amount
Purchase price	£300,000.00
Stamp Duty Land Tax	£2,500.00
Land Registry fee	£150.00
Legal fees	£1,200.00
VAT on legal fees	£240.00
Search fees	£320.00
Bank transfer fee	£35.00
Office copies (Land Registry docs)	£12.00
ID verification	£15.00
Apportionment of council tax	£45.00
Total owed	£304,517.00

Amounts credited to you (credits)

Item	Amount
Mortgage advance from lender	£270,000.00
Exchange deposit already paid	£30,000.00
Total credits	£300,000.00

Final amount you need to transfer

	Amount
Total owed	£304,517.00
Less total credits	£300,000.00
Balance to transfer	£4,517.00

This £4,517 is what you transfer to your solicitor a few days before completion to cover all the fees and disbursements.

Line-by-Line Explained

Purchase price. The agreed price for the property. This is the big number everything else revolves around.

Stamp Duty Land Tax. Tax paid to HMRC on the purchase. Rates vary based on property price, whether you're a first-time buyer, and whether it's an additional property. Your solicitor calculates this and pays it to HMRC within 14 days of completion.

Land Registry fee. Fee for registering the change of ownership. Ranges from £20 to £500+ based on property value. Some fees are reduced 50% for electronic submissions.

Legal fees. Your solicitor's charge for all their work. Usually a fixed fee agreed at the start.

VAT. 20% on the legal fees (not on the disbursements, which are already-incurred third-party costs).

Search fees. Cost of the various property searches done during conveyancing — local authority, water, environmental, etc.

Bank transfer fee. Usually £25-£50 for the solicitor to send the completion funds to the seller's solicitor. This is a CHAPS same-day transfer, which is more expensive than a standard bank transfer but required for property completion.

Office copies. Land Registry official documents confirming title and any charges.

ID verification. Cost of the electronic or manual ID check.

Apportionment of council tax. If the seller has prepaid council tax for the period after completion, you reimburse them for the days you'll actually own the property. Usually a small amount.

Apportionment of ground rent and service charges. For leasehold properties, similar apportionment for any prepaid charges. These can be larger — several hundred pounds for a year's service charges paid in advance.

Mortgage advance. The amount your lender is providing. Shown as a credit because it's reducing what you personally need to pay.

Exchange deposit already paid. The 10% you transferred at exchange. Already with your solicitor, being applied to the purchase.

Balance to transfer. What you personally need to pay to cover everything not covered by the mortgage and your existing deposit.

The Mortgage Deed

A few days before completion, your solicitor sends you the mortgage deed to sign. This is the legal document that:

Formally secures the mortgage loan against the property
Gives the lender legal rights over the property if you default
Must be signed before the mortgage can be registered

You sign in front of a witness — usually anyone over 18 who isn't a relative or beneficiary. Your solicitor will explain the witnessing requirements. Some firms accept electronic signing without physical witnesses for certain mortgages.

Don't skip this. Completion can't happen until the signed mortgage deed is returned to your solicitor.

Transferring the Final Funds

Your solicitor will tell you exactly how much to transfer and when. Typical timing:

2-3 days before completion: Funds should be with your solicitor. Bank transfers can take 1-3 working days depending on amounts and banks involved.

Use a bank transfer, not a cheque. Cheques take days to clear and create delays. A standard bank transfer is fine for most amounts; for very large transfers, your bank may require extra verification or a CHAPS same-day transfer (£25-£40 fee).

Check the account details three times. Conveyancing fraud is a real risk. Criminals sometimes intercept emails and send fake payment details. Verify your solicitor's account details by phone using a number from their website (not the email). Never transfer funds to a new account you've only received by email.

Get written confirmation of receipt. Once you've transferred, ask your solicitor to confirm receipt in writing.

What Else to Sort in This Period

Buildings insurance confirmed. Active from exchange date, continuing into ownership.

Removals booked. Companies can be booked weeks in advance but arrange the exact date once you have completion confirmed.

Utilities arranged. Contact gas, electric, and water providers to set up accounts from completion date. Take meter readings on completion day as a handover record.

Council tax. Contact the local authority to set up your new council tax account. You may need the property's completion date to register.

Change of address. Start updating key addresses — bank, driving licence, employer, HMRC, GP, car insurance. Some can be done online in minutes.

Contents insurance. Buildings insurance covers the structure. Contents insurance covers your possessions. Start cover from the date you move in.

Time off work arranged. Completion day isn't predictable — funds can transfer anywhere from 10am to 4pm, and keys are usually available a couple of hours later. Take the day off.

Section 3: Completion Day

Completion day is when you legally become the owner of the property and get the keys. It's simultaneously exciting and often stressful because the timing is unpredictable — you've booked removals but you don't quite know when you'll be able to collect keys.

What Happens Throughout the Day

Morning (roughly 9am-10am)

Your solicitor requests mortgage funds from the lender. This is done first thing. Lenders have cut-off times for same-day transfers — typically around 3pm — so solicitors always request early.

The lender releases the mortgage advance. This usually happens within a couple of hours of the request, though it can be same-day if the lender hasn't already queued it.

Your solicitor confirms your balance is held. They check your transferred funds and the mortgage advance are both in their client account.

Late morning to early afternoon (roughly 11am-2pm)

Funds transfer to the seller's solicitor. Your solicitor sends the full purchase price (minus the deposit already paid at exchange) via CHAPS same-day transfer to the seller's solicitor.

Seller's solicitor confirms receipt. Once they see the funds arrive, they confirm to your solicitor that completion has happened.

Completion is formally complete. At this exact point, you legally own the property. Your solicitor will contact you to confirm.

Afternoon (roughly 1pm-4pm)

Keys released. The seller's solicitor instructs the estate agent to release the keys. The agent contacts you to arrange collection or hand-over.

You collect the keys. Usually from the estate agent's office, sometimes from the seller directly, occasionally via a key safe at the property.

You move in. Removals, unpacking, settling in. You officially own the house.

Typical Timings

Fastest: Keys collected by 11am. Rare but possible for chain-free, same-day-funds transactions.

Typical: Keys collected between 12pm and 2pm.

Slower: Keys collected between 2pm and 4pm. Often due to chain delays where everyone has to complete in sequence.

Problem day: Keys collected after 4pm or completion delayed to next day. Usually caused by bank cut-off issues, mortgage fund delays, or chain collapses.

Why there's no fixed time: Completion is a sequence of bank transfers that have to happen in order. In a chain, everyone's transfers depend on the previous transaction completing. If anyone is slow, everyone after them is delayed.

What You Should Do on the Day

Be available by phone. Your solicitor needs to be able to contact you if anything comes up.

Don't book removals too early. If you've booked a van for 9am, you'll be sitting on the pavement until keys are ready. Book removals for late morning at the earliest.

Have the full day free. Don't book afternoon meetings. Completion can take all day.

Take meter readings. When you first arrive, read the electricity, gas, and water meters. Photograph them. Submit to the utility companies as your starting readings.

Check the property matches the contract. Confirm fixtures listed as staying are actually there. Confirm anything listed as being removed is gone. Flag any discrepancies to your solicitor immediately.

Check the keys work. Before the previous owners are completely unreachable, make sure you can actually unlock doors, windows, and any outbuildings.

Celebrate. You've just bought a house.

What Can Go Wrong on Completion Day

Mortgage funds don't arrive

Cause: Lender delay, technical issue, or paperwork discrepancy.

Impact: Without funds, the transfer can't happen. If the funds don't arrive before the bank's cut-off time (around 3pm for CHAPS), completion is delayed to the next working day.

What happens: Your solicitor chases the lender. Most issues are resolved same-day. Occasionally completion slips 1-2 days, which creates problems for removals and chain coordination.

Bank transfer delayed

Cause: Large transfers sometimes get flagged for additional security checks by the sending or receiving bank.

Impact: Funds may take longer to arrive than expected.

What happens: Solicitors chase the banks. Usually resolved within a few hours. Rarely causes a full-day delay.

Chain complication

Cause: Someone earlier in the chain isn't ready to complete.

Impact: Your completion can't happen until everything before you in the chain has completed.

What happens: Solicitors across the chain coordinate. Sometimes everyone has to wait for hours. Occasionally the chain fails on the day itself.

Disputes on the day

Cause: Seller removes fixtures they agreed to leave, property isn't in expected condition, or something has changed since the last viewing.

Impact: Depends on severity. Most issues are resolved by negotiation on the day. Serious issues can cause completion to be paused.

What happens: Contact your solicitor immediately. Don't accept keys or move in until the issue is resolved or documented.

Completion delayed to next day

What happens: If completion slips to the next working day:

You don't yet own the property (the seller still does)
Your removals are stranded — extra costs for overnight storage or rescheduling
Buildings insurance still applies to you from exchange
The seller may still be living there

Most contracts include a compensation provision (interest on the purchase price or a daily penalty) if the seller delays. Your solicitor will handle this.

After Completion

Completion is the big moment but it's not quite the end of the legal process.

Within 14 days

Stamp Duty paid. Your solicitor pays the SDLT to HMRC from the funds they held. You don't need to do anything — it's handled.

Within a few weeks

Land Registry registration. Your solicitor submits the transfer and mortgage deed to Land Registry. This formally updates the public record to show you as the new owner and the lender's charge against the property.

2-12 weeks after completion

Title documents sent to you. Once Land Registry has processed everything (which can take months in busy periods), your solicitor sends you:

The official title documents showing you as the owner
Confirmation of the mortgage charge being registered
Any other documents from the purchase

Keep these safe — you'll need them when you eventually sell.

First mortgage payment

Typically the 1st of the month after completion. Your lender will confirm the exact date and set up the direct debit. First payments are sometimes larger than standard because they cover a partial first month plus the standard monthly amount.

The Final Weeks Summary

Stage	Typical Timing	Key Action
Contract ready	Week 8-10	Solicitor produces Report on Title
Deposit transferred	Before exchange	10% to your solicitor
Buildings insurance arranged	Before exchange	Active from exchange date
Exchange of contracts	Week 10-12	Legally committed
Completion statement received	Week 11-13	Review all line items
Mortgage deed signed	Week 11-13	Witnessed signature
Final funds transferred	2-3 days before completion	To solicitor's client account
Completion day	Week 12-14	Funds transfer, keys collected
Stamp duty paid	Within 14 days after	Handled by solicitor
Land Registry updated	2-12 weeks after	Title formally transferred
First mortgage payment	1st of following month	Direct debit
Title documents received	2-12 weeks after	Keep safe

Frequently Asked Questions

What's the difference between exchange and completion?

Exchange is when you legally commit to the purchase — contracts are exchanged and you're bound to complete. Completion is when funds transfer, keys are handed over, and you become the legal owner. Exchange usually happens 1-2 weeks before completion.

Can I move in on completion day?

Yes, once you've collected the keys. Most buyers book removals for completion afternoon, though some book for the next day to avoid the unpredictable timing.

What time do I get the keys on completion day?

Usually between 12pm and 4pm, but it can be earlier or later depending on chain complexity and bank timing. There's no guaranteed time.

Can I back out after exchange?

Legally you could, but you'd lose your deposit (typically 10% of the purchase price) and could be sued for damages by the seller. In practice, post-exchange pull-outs are rare.

What happens if completion doesn't happen on the agreed day?

Usually the contract includes provisions for delays — interest charged on the purchase price, or daily penalties. If the delay is the seller's fault, they pay you. If it's yours, you pay them. Your solicitor handles this.

Do I need to be at the completion meeting?

There's no completion meeting in England and Wales. Everything is done remotely by the solicitors. You just need to be available by phone.

Who pays the solicitor's fees?

You do, as the buyer. They're deducted from the funds you transfer to your solicitor before completion.

When do I pay stamp duty?

Your solicitor collects it from you as part of the completion funds and pays it to HMRC within 14 days of completion. You don't need to handle the payment directly unless you have unusual circumstances.

What if the seller has left the property in a mess?

Flag it to your solicitor immediately before accepting keys. Depending on what's been left behind, this may or may not be something you can challenge. Contract terms usually say the property should be "vacant" and in the same condition as at exchange, but aesthetic cleanliness isn't usually covered.

Can completion happen on a weekend?

No. Completion can only happen on working days because it requires bank transfers between solicitors, which only process Monday to Friday.

What happens to my deposit if the sale falls through before completion?

Before exchange, the deposit sits with your solicitor and is returned to you if the sale falls through. After exchange, the deposit is legally committed — if the seller pulls out, you get it back plus potentially damages. If you pull out, you lose it.

Can I start doing work on the property before completion?

No. You don't own the property until completion. Even if you have keys (some sellers hand keys over early for measuring or decoration access), you have no legal right to do any work. Wait until you officially own it.

What is simultaneous exchange and completion?

When exchange and completion happen on the same day. Used in urgent situations but higher risk because there's no buffer for problems. Most transactions leave 1-2 weeks between exchange and completion.

Do I need to tell anyone I've moved in?

Yes — contact utilities (with meter readings from completion day), register for council tax with the local authority, update your address at your bank, DVLA, HMRC, employer, GP, and anywhere else you're registered.

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Author & Last Updated

Written by a CeMAP qualified mortgage advisor Last updated: April 2026

Last updated: April 2026