In any property transaction, exchange of contracts is a critical milestone.
It represents the point at which both the Buyer and Seller become legally committed to the sale. Understanding what happens during this stage—and what it means for you—can help ensure the process goes smoothly and confidently.
What Is Exchange of Contracts?
Exchange of contracts occurs when both the Buyer and the Seller have signed identical copies of the sale contract, and these are formally exchanged by their respective solicitors. At this point:
- The transaction becomes legally binding.
- The completion date (moving day) is fixed.
- The buyer usually pays a deposit (typically 10% of the purchase price).
Prior to exchange, either party can walk away from the deal without legal penalty. After exchange, doing so could result in serious financial consequences.
What Needs to Be Done Before Exchange?
Before contracts can be exchanged, several steps must be completed:
For Buyers:
- Survey/valuation completed.
- Mortgage offer received (if applicable).
- Searches completed (e.g. local authority, water and drainage, environmental).
- Enquiries raised and satisfactorily answered.
- Contract signed.
- Deposit funds available and transferred to your solicitor.
For Sellers:
- Property information forms completed and returned.
- Fixtures and fittings list agreed.
- Contract signed.
- Arrangements to vacate the property by completion day confirmed.
How Does Exchange Actually Happen?
Exchange of contracts is handled by the solicitors, not the buyer or seller directly. Typically:
- Both solicitors agree by phone (a process known as “exchange by telephone”).
- They read out the terms of the contract to each other and check they are identical.
- The physical contracts are then exchanged by post or courier.
Once this has happened, the deal is legally binding.
Key Things to Expect at Exchange
- Deposit is paid: The buyer’s solicitor transfers the agreed deposit to the seller’s solicitor.
- Completion date is fixed: This is usually a few days to a few weeks after exchange, depending on the agreement.
- Insurance responsibility transfers: The Buyer should have insurance in place from the moment of exchange.
- No backing out: If the Buyer pulls out, they forfeit their deposit. If the Seller pulls out, they could be sued for losses.
After Exchange: What Next?
Once contracts are exchanged:
- Removal companies can be booked with confidence.
- Final preparations for moving can begin.
- Solicitors will begin drawing up completion statements and preparing for final transfer of funds and ownership.
Exchange of contracts marks the moment when your property transaction becomes real and legally binding.
With the right legal guidance and clear communication, it can be a smooth and stress-free part of the conveyancing journey.
What to Expect on the Day of Completion in a Conveyancing Matter
The day of completion is a pivotal milestone in any property transaction.
It’s the final step in the conveyancing process, marking the moment when legal ownership of a property officially transfers from the Seller to the Buyer. While it’s an exciting day, it can also be stressful if you’re not clear on what to expect.
Here’s a straightforward guide to help Buyers and Sellers navigate the completion day with confidence.
- What Is the Day of Completion?
Completion day is the date agreed in the contract of sale when:
- The buyer’s solicitor transfers the purchase funds to the seller’s solicitor.
- The seller vacates the property.
- The buyer receives the keys and takes legal possession of the home.
This normally takes place between Monday to Friday, so that bank transfers can take place and to allow for the solicitors to communicate with one another.
- For Buyers: What Happens on/or before Completion Day?
- a. Final Checks (this will normally take place a couple of days prior to completion)
Your solicitor will:
- Ensure all paperwork is in order.
- Confirm mortgage funds (if applicable) have been received.
- Request any balance owed from you (if not already done).
- b. Transfer of Funds
- Your solicitor will send the purchase money to the Seller’s solicitor via CHAPS (a same-day bank transfer).
- Once funds are received, the Seller’s solicitor confirms receipt and authorises the estate agent to release the keys.
- c. Getting the Keys
- You’ll usually collect the keys from the estate agent once the Seller’s solicitor has confirmed completion with your solicitor.
- This typically happens between midday to early afternoon, but delays can occur depending on the speed of the banking system.
- For Sellers: What to Expect
- a. Vacating the Property
- You’ll need to vacate the property by the agreed time (usually by midday).
- The property must be left in the condition agreed upon in the contract.
- b. Receiving the Funds
- Once your solicitor confirms receipt of the funds, they’ll settle any outstanding mortgage or charges on the property.
- Any remaining balance is then transferred to your account, usually the same day.
- Delays on Completion Day
Delays can happen due to:
- Late bank transfers.
- A long property chain (where each transaction depends on another).
- Errors in final paperwork.
To minimise stress:
- Stay in regular contact with your solicitor.
- Have contingency plans if moving (e.g., access to storage or temporary accommodation).
- Avoid scheduling removals too tightly.
- After Completion
For Buyers, your solicitor will:
- Pay Stamp Duty or Land Transaction Tax (if the property is in Wales).
- Register your ownership with HM Land Registry.
- Send you the title deeds and any other legal documents once registration is complete. Please note that the Land Registry have a backlog and some applications can take several months to complete. Should you wish to understand when your application should be registered, please do speak with your solicitor as they can request this information from the Land Registry.
For Sellers, your solicitor will:
- Settle any outstanding mortgage.
- Pay the Estate Agents’ Invoice (if you have provided them with authority to do so).
- Having provided you with a completion statement showing the financial breakdown, send the Net Proceeds to you.
- Tips for a Smooth Completion Day
- Communicate – with your solicitor, estate agent, and removal company.
- Have funds ready – if you’re a Buyer (including any balance and stamp duty) and send these to your solicitor one working day prior to completion.
- Pack and prepare – if you’re the Seller, make sure that the property is clean and vacant. If you’re the Buyer, make sure the movers are ready.
- Be patient, especially in chains – unexpected delays can and do happen.
Completion day is the final hurdle in the property transaction process. With proper preparation, clear communication, and a bit of patience, it can be a smooth and even enjoyable experience.
Whether you’re buying or selling, understanding what happens on the day helps ensure you’re ready when the moment arrives to make your move.
Lauren Bateman is a highly experienced and competent property professional dealing with residential conveyances (she’s also very nice!).
Please contact our specialist Conveyancing Team
Should you require Conveyancing services, please contact Lauren using our online enquiries page or call us on 020 7387 2032.