If you’re buying or selling a home, you’ll hear a lot about exchanging contracts. It’s a big milestone in the house purchase process, and one that brings you a major step closer to getting the keys or handing them over.
In this guide, we’ll explain what exchanging contracts means, what happens during the process, how long it takes, and what to expect before and after completion.
What does exchanging contracts mean?
Exchanging contracts is when the buyer and seller each sign identical legal agreements — the contracts — and these are swapped by their solicitors. Once this happens, the deal becomes legally binding.
At this point, both sides commit to the sale. If either party pulls out after the exchange, there are serious consequences, including financial penalties.
Why do I need to exchange contracts?
Exchange protects both the buyer and seller. It ensures:
- The buyer will purchase the property at the agreed price
- The seller will not sell to anyone else
- The agreed-upon moving date is confirmed
- Both parties have legally committed to the deal
Before this point, either side can back out, even right at the last minute. Exchange locks everything in.
Who exchanges contracts?
Your solicitor or conveyancer handles the exchange. They’ll liaise with the other side’s solicitor to confirm all the legal checks are complete, the finances are in place, and that both parties are ready to proceed.
You’ll usually sign your copy of the contract in advance, and your solicitor will exchange it on your behalf once everyone is ready.
When do I exchange contracts?
You’ll exchange once:
- Your mortgage offer is confirmed
- All searches and surveys are complete
- Both parties have signed the contract
- A completion date has been agreed
This can be days or weeks before you complete, depending on how smoothly things go.
How long is it between exchange and completion?
There’s no set rule. Most people complete one to two weeks after the exchange, giving time to pack, book removals, and prepare to move.
In some cases — especially with cash buyers or empty properties — it can happen the same day.
What happens when you exchange contracts?
When contracts are exchanged, your solicitor will:
- Swap signed contracts with the seller’s solicitor
- Take your deposit (usually 5–10% of the purchase price)
- Confirm the completion date in writing
- Finalise any last legal details
From this point, your purchase is locked in.
What does completion mean?
Completion is when the remaining funds are transferred, and you officially take ownership of the property. You get the keys, and the property becomes legally yours.
What happens on completion day?
On completion day:
- Your solicitor sends the rest of the funds to the seller’s solicitor
- The seller confirms receipt
- The estate agent releases the keys to you
- You move in!
This usually happens late morning or early afternoon, although there’s no fixed time. If you’re wondering what time of day does exchange of contracts happen, the answer is: anytime the solicitors agree, usually before 5pm.
Can exchanging contracts and completion happen on the same day?
Yes, this is called a simultaneous exchange and completion. It’s more common in chain-free purchases or when speed is essential.
However, it carries more risk, as you won’t have time to resolve issues between exchange and moving day. It also means booking removals and sorting utilities before you’re legally committed.
What can delay the exchange of contracts?
Several things can slow down the process:
- Issues with mortgage approval
- Unanswered legal questions from searches
- Problems in the property chain
- Survey results needing negotiation
- Delays in getting paperwork signed
To avoid hold-ups, keep in close contact with your solicitor and respond quickly to any requests.
How much does exchanging contracts cost?
There’s no specific fee for exchanging contracts, but costs around this stage include:
- Your solicitor’s fees (usually billed at the end)
- The deposit — typically 10% of the property price
- Finalising mortgage arrangements
Speak to your conveyancer to understand your payment timeline and any upfront charges.
Are you at the beginning of your buying or selling process?
If you’re just starting on your buying or selling journey, there’s plenty of guidance available to help you feel more confident. You can explore properties for sale, learn how to sell your home with CJ Hole, or get support finding the right mortgage.
For more insights, take a look at our guides on how to buy a house step by step, preparing your finances before you move, and the key questions buyers should ask estate agents.
For more support with your house exchange or to book a free valuation, get in touch.
