Exchange
What is exchange of contracts?
Last reviewed: 3 October 2026
The brief answer
Exchange is when both sides' solicitors swap signed contracts and the purchase becomes legally binding. The completion date is fixed and your deposit is paid.
In plain English
Before exchange, your solicitor makes sure searches, enquiries and the mortgage offer are satisfactory and that you have signed the contract and mortgage deed.
At exchange your deposit is sent to the seller's solicitor. The amount is agreed between the solicitors. If you then fail to complete, you may lose the deposit and face further claims.
Lenders commonly require buildings insurance from exchange, because you become responsible for insuring the property from that point. Your solicitor will confirm.
Why it matters
After exchange, pulling out is extremely costly. Make sure all your questions are answered first.
What to do next
- 1Read your solicitor's report carefully.
- 2Arrange buildings insurance for the required date.
- 3Transfer deposit funds in good time, confirming bank details by phone.
Checklist
- All questions answered
- Contract signed
- Deposit funds ready
- Insurance arranged
- Completion date agreed