Can I book my removals?Â
What is Completion?Â
What is Exchange of Contracts?
The Short Answer
Exchange of Contracts is the stage in a property transaction when the buyer and seller become legally bound to complete the sale on an agreed date.
Until contracts have been exchanged, either party can usually withdraw from the transaction without the legal consequences that apply after exchange. Once exchange has taken place, both parties are committed to the transaction.
What Happens Before Exchange?
Before contracts can be exchanged, a considerable amount of legal work needs to be completed. This may include:
- Reviewing the contract documentation.
- Investigating the legal title.
- Receiving and reviewing search results.
- Raising and resolving enquiries.
- Receiving your mortgage offer (if applicable).
- Satisfying any lender requirements.
- Preparing your Report on Title.
- Agreeing a completion date with all parties in the chain.
- Receiving your signed contract and any deposit required for exchange.
Only when everyone is ready can contracts be exchanged.
How Does Exchange Take Place?
Exchange of Contracts is usually carried out by the buyer's and seller's conveyancers over the telephone using an agreed Law Society Formula.
Once both conveyancers confirm that they hold signed contracts and all requirements have been met, the contracts are formally exchanged and the agreed completion date becomes legally binding.
You do not need to be present when exchange takes place.
What Changes After Exchange?
Once contracts have been exchanged:
âś” The completion date is legally agreed.
âś” The buyer and seller are committed to the transaction.
âś” Neither party can simply change their mind without potentially facing legal and financial consequences.
âś” Arrangements such as removals can usually be confirmed with confidence.
Exchange is often seen as one of the most significant milestones in the conveyancing process.
Can Exchange and Completion Happen on the Same Day?
Yes.
Although many transactions exchange contracts a few days or weeks before completion, it is also possible for exchange and completion to take place on the same day.
Whether this is appropriate will depend on the circumstances of the transaction and the agreement of everyone involved.
Why Can't We Exchange Earlier?
Your conveyancer must be satisfied that all necessary legal investigations have been completed before exchange takes place.
Exchanging too early could expose you to unnecessary risks, particularly if important information is still outstanding.
Our role is to ensure that you fully understand the legal position before you become contractually committed.
What Happens If Someone Pulls Out Before Exchange?
Until contracts have been exchanged, the transaction is not legally binding.
This means that either the buyer or seller may decide not to proceed, although this can be disappointing for everyone involved.
For this reason, we always recommend waiting until after exchange before making irreversible financial commitments such as booking non-refundable removals or giving notice on rented accommodation.
Top Tip
Exchange of Contracts is the point at which your transaction becomes legally binding—not when your offer is accepted.
If you're unsure whether contracts have been exchanged, always check with your conveyancer before making arrangements based on your proposed moving date.
In Practice...
One of the most common questions we are asked is, "Can we exchange today?"
While everyone is naturally keen to move forward, exchange can only take place once all legal work has been completed, any outstanding issues have been resolved, and every party in the chain is ready. Rushing to exchange before these steps are complete can create unnecessary risks that are far more difficult to resolve afterwards.
Did You Know?
In a chain of property transactions, exchange usually takes place for every linked sale and purchase on the same day. This ensures that each transaction is legally connected, allowing everyone in the chain to complete on the agreed date.
When Do I Pay My Deposit?Â
The Short Answer
Your deposit is usually required shortly before Exchange of Contracts.
Your conveyancer will let you know exactly how much is required, when it needs to be paid, and provide you with our client account details well in advance. Please do not send any money until we have asked you to do so.
What Is the Deposit?
The deposit is the amount paid when contracts are exchanged to demonstrate your commitment to the purchase.
Once contracts have been exchanged, both the buyer and seller are legally bound by the terms of the contract.
The deposit forms part of the purchase price and is not an additional payment.
How Much Will I Need to Pay?
Traditionally, the contract deposit is 10% of the purchase price. However, many transactions proceed with a lower deposit by agreement between the parties.
If you are also selling a property, the deposit received from your buyer is often used towards the purchase of your new property, reducing the amount you may need to provide yourself.
Your conveyancer will advise you of the amount required for your transaction.
When Should I Send the Money?
Your conveyancer will contact you when the time is right.
Funds should be transferred in good time before the proposed exchange date to ensure they have cleared into our client account.
We will never ask you to send money without explaining what it is for and why it is needed.
Who Do I Pay?
Your deposit should only ever be sent to the client account details provided directly by MA Lawyers.
Before sending any money, always check that the bank details match those provided by us.
If you receive an email advising that our bank details have changed, do not send any funds until you have spoken to us directly using a trusted telephone number.
Is My Money Safe?
Money held by MA Lawyers is kept in a designated client account in accordance with the regulatory requirements of the Council for Licensed Conveyancers.
These rules are designed to ensure that client money is held securely and separately from the firm's own funds.
What Happens If I'm Buying and Selling at the Same Time?
If you are selling one property and buying another, the deposit from your sale is often used towards your purchase.
In many cases, this means you do not need to provide the full contract deposit yourself.
Your conveyancer will explain how this works and whether any additional funds are required.
Is the Deposit the Same as My Mortgage Deposit?
No.
This is a common misunderstanding.
The contract deposit paid on exchange and the deposit you are contributing towards the purchase price are not always the same amount.
For example, you may be purchasing with a 5% mortgage deposit but still exchange contracts using a different amount agreed between the parties.
Your conveyancer will explain how this applies to your transaction.
Top Tip
Never send money to a bank account simply because you have received an email.
Unfortunately, property transactions are sometimes targeted by fraudsters. If you are ever unsure about our bank details, contact us using a trusted telephone number before transferring any funds.
In Practice...
One of the most common concerns we hear is, "I don't have 10% available."
In many transactions, particularly where clients are also selling a property, the deposit arrangements can often be agreed between the parties. Every transaction is different, and we will explain exactly what is required for your circumstances well before exchange.
Did You Know?
The balance of the purchase price is not paid on Exchange of Contracts.
Your conveyancer will request any remaining monies required before Completion, when ownership of the property is transferred and you receive the keys.