Exchange of Contracts to Completion — What Happens in Between

Exchange of contracts is the moment your property transaction becomes legally binding. Before exchange, either party can withdraw without penalty. After exchange, withdrawal has serious financial consequences.

What Happens at Exchange

Both solicitors exchange signed contracts, usually by telephone, then confirm in writing. At the same moment:

• The buyer pays their **deposit** — typically 10% of the purchase price — to the seller's solicitor to hold until completion
• A **completion date** is agreed by all parties in the chain
• The buyer becomes legally committed to purchasing the property

The period between exchange and completion is most commonly 2–4 weeks, though it can be as short as the same day (risky) or as long as 6 weeks if there are practical reasons (new build approaching completion, buyer's removal arrangements).

If the Buyer Pulls Out After Exchange

The buyer **loses their deposit**. If the deposit paid was less than 10% of the purchase price, the seller can also pursue the buyer for the remainder of the 10%. The seller may also claim further damages if they can demonstrate additional losses.

If the Seller Pulls Out After Exchange

The buyer can pursue a claim for **specific performance** — a court order requiring the seller to complete the sale. Alternatively, the buyer can seek damages for their losses. In practice, a seller pulling out post-exchange is rare and legally and financially very costly for them.

Buildings Insurance From Exchange

As buyer, you are responsible for buildings insurance **from exchange of contracts**, not from completion. If the property burns down between exchange and completion, it is your loss unless you're insured. Arrange buildings insurance to start on the exchange date.

What You Can and Cannot Do Between Exchange and Completion

**You can:** commission decorators or tradespeople to visit (with seller's permission), arrange your removal company, begin redirecting mail, and notify utility companies of your moving date.

**You cannot:** move in, carry out any work, or change anything about the property until completion.

The seller retains possession until completion and is obliged to maintain the property in the condition it was in at exchange.

The Final Inspection Before Completion

You are entitled to a pre-completion inspection (sometimes called a "final walkthrough") to check the property is in the expected condition. Do this 24–48 hours before completion. Check:

• All agreed fixtures and fittings are present
• No damage has occurred since you last visited
• White goods included in the sale are still there
• The property is in the state described

If there is a significant discrepancy, contact your solicitor immediately. You can delay completion until it's resolved, though this is a serious step.

Completion Day

Funds are transferred by your solicitor first thing in the morning. The chain cannot release keys until all funds have cleared through every transaction. Most completions happen by 2pm. Your estate agent will call you (or text) to confirm keys are available. From that moment, the property is yours.

Keep your solicitor's number handy all day. Delays do happen — a single slow payment in a long chain can push completion to late afternoon. Don't schedule deliveries or tradespeople for completion morning.

Once you have the keys, your Property Passport UK can be updated to reflect the new ownership, giving you a clean record of your property history from day one.