Skip to content
Glossary · Mortgages

Exchange of contracts

Links marked * are commercial or go to our partner sites, which share our operator. Third-party companies may pay us commission. How we make money.

Content updated:

Definition: The point in England and Wales when a property sale becomes legally binding. Before exchange, either side can pull out.

Both conveyancers swap signed contracts and the buyer usually pays a deposit. A completion date is fixed at the same time. Pulling out after exchange normally means losing the deposit and possibly paying further compensation.

Primary source: gov.uk/buying-a-home

Related

More Mortgages terms