When buying or selling a home, there are two legal milestones that everyone in the UK property market comes across: exchange of contracts and completion. While both are crucial to finalising a sale, they’re often misunderstood, especially by first-time buyers.
At Dudden Law, we know how important it is for clients to feel confident at every stage of their move. That’s why we’ve broken down what each term means and how they differ, so you can approach your transaction with clarity.
What is Exchange of Contracts?
The exchange of contracts is the point at which the buyer and seller become legally bound to complete the sale. Up until this stage, either party can walk away without financial penalty (though survey costs or legal fees may have already been incurred).
Here’s what happens at exchange:
– The buyer and seller’s solicitors swap signed contracts.
– A completion date is agreed and written into the contract.
– The buyer pays a deposit (usually 10% of the purchase price).
– From this point, pulling out of the sale can result in severe financial consequences.
Exchange usually happens once all due diligence is complete—this includes mortgage offers being in place, searches being returned, and any questions or issues about the property being resolved.
What is Completion?
Completion is the moment ownership of the property officially changes hands. It’s the day the buyer gets the keys and can move in.
Here’s what happens on completion day:
– The remaining balance of the purchase price is transferred from buyer to seller via solicitors.
– The seller vacates the property.
– The buyer receives the keys and legal ownership is transferred.
– The transaction is recorded with HM Land Registry.
Completion is typically a few days to two weeks after exchange, though same-day exchange and completion is sometimes possible (and more common in chain-free sales).
Why the Difference Matters
Understanding the distinction between exchange and completion helps manage expectations and stress. Many buyers think the moment an offer is accepted means the deal is done, but in truth, nothing is binding until exchange. Likewise, many don’t realise that even after exchange, there’s still a short wait before they can move in.
For sellers, it’s important to be aware of your obligations once exchange happens, especially in terms of vacating the property and preparing for handover.
How Dudden Law Can Help
Buying or selling a property can be one of the most exciting—but also most stressful experiences in life. Our experienced conveyancing team at Dudden Law is here to guide you every step of the way, ensuring the process is handled efficiently, clearly, and with minimal hassle.
If you’re looking to buy or sell your property, get in touch with our expert conveyancing team today. We’re here to make sure your move goes smoothly, right from the first steps to the final handover.
Written By
Molly Whitehead
Trainee Solicitor
