Exchange of Contracts
Exchange of contracts is the point when the buyer and seller become legally committed to the property sale.
1 min read Buying a Home
What it means
Exchange of contracts is the point when the buyer and seller become legally committed to the property sale. After this stage, there may be financial consequences for either the buyer or seller if they decide to not proceed.
Example
Both sides sign contracts and the solicitors exchange them, making the sale legally binding.
Why it matters
It's one of the biggest milestones in the home-buying process.
This usually happens before completion day.
Can I change my mind after exchange?
Usually not without consequences.