What does exchange of contracts mean?

When you buy a home, the exchange of contracts is when both parties swap and sign the contracts. It’s a crucial stage that will be done by your conveyancer.

What happens at the exchange of contracts?

1. Draft contract

The conveyancer will send a draft copy of the sales contract. Make sure you read it well and raise anything you are unhappy or unsure about. Such as, any repairs that need doing before you get the keys. These can then be added to the contract, which will make the seller responsible for fixing them.

If you agree with what’s included, sign the contract. Your conveyancer will exchange your signed contract with the seller's signed contract.

2. Setting a completion date

At this stage, the conveyancer will set a completion date for when the house becomes yours.

Once both parties are happy, the contract is signed and exchanged, and a date fixed for completion. This is when you’ll get the keys to your new home.

3. Paying your deposit

Once the contract is signed, you are legally bound to buy the home. It’s the point you pay your deposit. If you want to pull out after this stage, you’ll lose your deposit.

4. Completion

On completion your conveyancer arranges to send the funds to the seller.

What do you need to prepare for the exchange of contracts?

The buyer and the seller will have a few things to work through.

The buyer:

  • Get written proof of your mortgage offer.
  • Have the money for your deposit ready.
  • Make sure your conveyancer is setting up the necessary surveys.
  • Flag any concerns to your conveyancer.
  • Let your conveyancer know if you are part of any government schemes, such as a Help to Buy ISA.

The seller:

  • Collect all the paperwork about the house.
  • Complete any repairs agreed as per the house survey.
  • Complete all the forms needed, such as the property information form (TA6).

Both buyer and seller:

  • Agree on a new price, if relevant.
  • Agree on a completion date.
  • Sign the contract.

Any delays at this stage will delay the date that you can complete your purchase.

What can hold up the exchange of contracts?

There are a few things, but the most common are:

Property issues

If the buyer and the seller are still discussing the purchase price or agreeing on any repairs needed.

Paperwork delays

Make sure you complete and return any requested paperwork as soon as you can. For example, your house survey.

Conveyancer

The buyer and sellers’ conveyancers need to agree on a day and time to exchange contracts.

As they’ll both have many other clients and appointments, they’ll need to schedule time for a suitable date.

Other influences

Some delays may be out of your control. For example, waiting for the mortgage offer in writing. Or if the seller is facing delays with their own house purchase. Either way, these things can delay the process.

Lets look at the details

You could lose your home if you don’t keep up your mortgage repayments

You may also like

Mortgage calculator

Our online mortgage calculator will give you an idea of how much you could borrow.

Mortgage calculator

Cost of moving home

Learn about the costs associated with moving home and what you need to plan for.

Moving home costs

Selling a house

There are lots of different stages to selling your house, here’s how to do it step-by-step.

Selling a house

First time buyers help

Looking to take your first step on the property ladder? Find out how mortgages work and what to expect when you get your first one.

First time buyers help

First time buyers help

Looking to take your first step on the property ladder? Find out how mortgages work and what to expect when you get your first one.

First time buyers help