What Happens After Exchange of Contracts?

Buying a home is a major milestone, and exchanging contracts is one of the biggest moments in the process. The actual process of exchanging contracts is typically quick and straightforward, involving communication between the solicitors of the buyer and seller once all preparations are finalized. At this stage, both the buyer and seller are legally committed to the transaction, meaning neither side can back out without serious consequences. But what happens next? From preparing for completion day to finalising financial arrangements, there are several steps to take before you can collect the keys.

In this guide, we’ll go through what to expect after the exchange of contracts, potential delays, and how to ensure a smooth transition to your new home.

Pre-Exchange Preparations

Get a Property Survey

Before reaching the stage of exchanging contracts, arranging a property survey is highly recommended. A survey provides a detailed assessment of the property’s condition, flagging up any potential structural problems, damp issues, or other hidden concerns that may not be obvious at first glance.

A surveyor will carry out a full inspection and provide a report outlining their findings. If any issues are identified, this report can be used as a basis for renegotiation. In some cases, buyers can ask for repairs to be made before completion or adjust the agreed price to reflect any necessary work.

Different types of surveys are available, from basic condition reports to in-depth structural surveys. The right choice will depend on the property’s age, condition, and whether significant renovations have been made.

Receive a Mortgage Offer

For buyers who need a mortgage, securing a formal mortgage offer is a key step before exchanging contracts. Most buyers apply for a mortgage early in the process, but the lender will need to carry out a valuation before confirming how much they are willing to lend.

A mortgage valuation differs from a full survey—it is primarily for the lender’s benefit to ensure the property is worth the agreed price. If the valuation comes back lower than expected, the buyer may need to renegotiate the price, put down a larger deposit, or consider other mortgage options.

Once the mortgage offer is in place, the buyer’s solicitor will coordinate with the lender to ensure the mortgage funds are available in time for completion. The release of funds typically takes place a few days before the final handover, allowing enough time for everything to be processed smoothly.

Ensure Your Finances are Ready to Go

For buyers who need a mortgage, securing a formal mortgage offer is a key step before exchanging contracts. Most buyers apply for a mortgage early in the process, but the lender will need to carry out a valuation before confirming how much they are willing to lend.

A mortgage valuation differs from a full survey—it is primarily for the lender’s benefit to ensure the property is worth the agreed price. If the valuation comes back lower than expected, the buyer may need to renegotiate the price, put down a larger deposit, or consider other mortgage options.

Once the mortgage offer is in place, the buyer’s solicitor will coordinate with the lender to ensure the mortgage funds are available in time for completion. The release of funds typically takes place a few days before the final handover, allowing enough time for everything to be processed smoothly.

Book Your Removal Company

With the exchange of contracts complete, it’s time to start planning for moving day. Both the buyer and seller will need to organise how they’ll transport their belongings, whether using a professional removal company or handling the move themselves. Sellers must also consider estate agent fees along with their solicitor costs on completion day.

Hiring a removal company can make the process much easier, especially for those moving a large number of items or travelling a long distance. It’s a good idea to compare quotes from different providers to find the best deal while ensuring the service meets your needs. Some companies offer packing services, temporary storage, or even full moving assistance, which can be particularly useful for those with busy schedules.

For those opting to move without professional help, hiring a van or enlisting friends and family can keep costs down. However, careful planning is still needed to make sure everything runs smoothly on the day.

Regardless of the approach, it’s important to check the completion date before finalising any bookings. Last-minute changes can be costly, so flexibility in arrangements can be beneficial.

Get Buildings Insurance

Once contracts have been exchanged, the buyer becomes legally responsible for the property. This means that if anything happens to the building—such as fire, flooding, or structural damage—the buyer could be liable for repair costs, even though they haven’t officially moved in yet.

Most mortgage lenders require buyers to have buildings insurance in place from the date of exchange. This protects both the buyer and the lender in case of unexpected damage before completion. Failing to arrange cover could put the mortgage offer at risk, as lenders may refuse to release funds without proof of insurance.

When choosing a policy, it’s worth checking the level of cover, including protection against natural disasters, subsidence, and accidental damage. Comparing quotes from different providers can help find a suitable deal, but the policy must meet the lender’s requirements. It’s also advisable to confirm with the solicitor that the insurance details have been correctly documented as part of the purchase process.

The Exchange of Contracts Process

What is Exchange of Contracts?

Exchange of contracts is a key milestone in the home-buying process. It is the point where both the buyer and seller become legally bound to complete the sale, meaning neither party can withdraw without serious financial consequences. A signed contract from both parties is crucial at this stage to make the sale legally binding.

Before this stage, the buyer’s solicitor will have carried out all necessary legal checks, including reviewing property searches, raising enquiries, and ensuring that any outstanding matters have been resolved. Once both sides are satisfied, they will sign identical contracts, which are then exchanged between the solicitors.

If problems arise after exchanged contracts, it is important to immediately inform your solicitor to understand your legal options and potential remedies.

At this point, the buyer is required to pay a deposit, typically 10% of the property’s price. This money is held by the seller’s solicitor and acts as security for the transaction. If the buyer pulls out after exchange, they risk losing their deposit.

A completion date is then agreed upon, usually taking place one to two weeks after exchange. This is when the remaining balance is paid, legal ownership is transferred, and the buyer can collect the keys to their new home.

When Does Exchange of Contracts Happen?

Exchange of contracts should only take place once all legal and property checks have been completed. This ensures that both the buyer and seller are fully informed about the property and that there are no unresolved issues that could cause problems later. The exchange of contracts marks the point at which the property sale becomes legally binding.

Before reaching this stage, several key steps must be completed:

• Property Surveys – The buyer may choose to have a survey carried out to check for structural issues or other concerns that could affect the property’s value.
• Searches and Legal Checks – The buyer’s solicitor will conduct local authority searches, environmental checks, and any additional investigations required for the property.
• Mortgage Arrangements – If the buyer is purchasing with a mortgage, the lender must have issued a formal mortgage offer, confirming the loan amount and conditions.
• Outstanding Enquiries – Any questions raised by the buyer’s solicitor, such as boundary disputes, planning permissions, or property alterations, must be resolved.

The buyer’s conveyancer will confirm when all these steps have been completed and when the contracts are ready to exchange. Once this happens, the transaction becomes legally binding, and both parties can prepare for completion.

Post-Exchange Process

Agreeing on a Completion Date

Once contracts have been exchanged, the next step is to finalise the completion date. This is the day when the remaining balance is transferred, ownership is legally transferred to the buyer, and the keys are handed over.

The completion date is usually set at the time of exchange, with most transactions completing within one to two weeks. However, in some cases, the timeframe can be shorter or longer, depending on the circumstances of both the buyer and seller.

Both parties must ensure they have the necessary funds in place for completion, including the remaining purchase balance, legal fees, and any additional costs. The buyer’s solicitor will coordinate with the mortgage lender (if applicable) to ensure that funds are released in time for the agreed date.

It’s important to plan ahead for moving arrangements, as completion day can be hectic. Buyers and sellers should confirm removal plans, utility transfers, and any last-minute details to make the transition as smooth as possible.

What to Expect After Exchanging Contracts

Once contracts have been exchanged, both the buyer and seller are legally committed to completing the transaction. This means neither party can withdraw without facing significant financial consequences.

During this period, the buyer’s solicitor will carry out the final legal steps to ensure the transfer of ownership goes smoothly. This includes:

• Transferring Title Documents – The solicitor will arrange for the necessary paperwork to be sent to the Land Registry, ensuring that the legal ownership of the property is correctly recorded.
• Managing Funds – The solicitor will liaise with the buyer’s mortgage lender to ensure the remaining funds are received in time for completion. These funds, along with any additional amounts from the buyer, will then be transferred to the seller’s solicitor. The seller’s solicitor will facilitate the transfer of funds and key handover, ensuring the transaction proceeds smoothly after contracts have been exchanged.

The buyer should also double-check that all financial arrangements are in place, including legal fees, moving costs, and any outstanding payments. Making these final preparations can help avoid any last-minute issues as completion day approaches. It is crucial to settle the unpaid purchase price on completion day to avoid losing the deposit and ensure the property legally transfers to the buyer.

Potential Delays and Issues

Common Delays in the Exchange of Contracts Process

Once contracts have been exchanged, both the buyer and seller are legally committed to completing the transaction. This means neither party can withdraw without facing significant financial consequences.

During this period, the buyer’s solicitor will carry out the final legal steps to ensure the transfer of ownership goes smoothly. This includes:

• Transferring Title Documents – The solicitor will arrange for the necessary paperwork to be sent to the Land Registry, ensuring that the legal ownership of the property is correctly recorded.
• Managing Funds – The solicitor will liaise with the buyer’s mortgage lender to ensure the remaining funds are received in time for completion. These funds, along with any additional amounts from the buyer, will then be transferred to the seller’s solicitor.

The buyer should also double-check that all financial arrangements are in place, including legal fees, moving costs, and any outstanding payments. Making these final preparations can help avoid any last-minute issues as completion day approaches.

What to Do if Something Goes Wrong After Exchanging Contracts

Once contracts have been exchanged, the sale is legally binding, meaning pulling out at this stage carries serious consequences. However, unexpected issues can still arise, and it’s important to understand what options are available. Both the buyer’s and seller’s solicitors must be involved in resolving any issues that arise.

If a problem occurs, the first step is to review the contract. The terms will outline how disputes or changes should be handled, including penalties for backing out. The sellers solicitor manages the final transfer of funds and ensures the seller is ready to vacate the property.

If the Buyer Pulls Out

If the buyer withdraws after exchanging contracts, they will typically forfeit their deposit, which is usually 10% of the purchase price. The seller may also be able to claim additional compensation if they incur financial losses due to the collapsed sale. In some cases, the seller may choose to take legal action to force the buyer to complete the purchase, known as suing for specific performance.

If the Seller Pulls Out

If the seller attempts to back out, the buyer can also take legal action. The buyer may be entitled to claim compensation for financial losses, such as survey fees, legal costs, and any expenses related to their planned move. In extreme cases, a court may order the seller to complete the sale as agreed.

Negotiating a Resolution

Sometimes, rather than going down the legal route, both parties may agree to renegotiate. If an issue arises—such as a problem with the mortgage or a change in personal circumstances—there may be room to discuss an adjusted completion date or other changes to allow the sale to continue.

Since legal action can be time-consuming and costly, getting professional advice from a solicitor is often the best approach when dealing with post-exchange disputes.

Completion Day

What Happens on Completion Day?

Completion day is the final step in the home-buying process, when ownership of the property is officially transferred from the seller to the buyer. It is often an exciting but busy day, as funds are transferred, legal formalities are finalised, and keys are handed over.

The process typically unfolds as follows:

• Transfer of Funds – The buyer’s solicitor sends the remaining balance to the seller’s solicitor. This amount includes the outstanding purchase price, any mortgage funds from the lender, and any remaining fees.
• Confirmation of Completion – Once the seller’s solicitor confirms receipt of the funds, they will notify the estate agent that the sale has completed. The estate agent will then be authorised to release the keys to the buyer. Estate agents play a crucial role in communicating critical information during this phase, ensuring that the buyer receives the keys promptly.
• Legal Transfer of Ownership – The buyer’s solicitor will handle the final legal steps, including registering the new ownership with the Land Registry.

For the buyer, it’s important to ensure all legal costs, disbursements, and any outstanding payments have been settled in advance to avoid delays. The seller must also make sure they have vacated the property in line with the agreed terms, leaving it in the condition specified in the contract.

Once the transaction is complete, the buyer is free to move in and start settling into their new home.

Completion Day Explained for Sellers and Buyers

Completion day marks the point at which legal ownership of the property officially transfers from the seller to the buyer. Both parties have responsibilities to ensure the process runs smoothly.

For Sellers

On completion day, the seller must vacate the property (unless otherwise agreed) and ensure it is left in the condition set out in the contract. Once the seller’s solicitor confirms receipt of the remaining funds, legal ownership is transferred, and the keys can be released to the buyer. The seller’s mortgage (if applicable) will also be repaid from the proceeds of the sale before the remaining balance is transferred to them.

For Buyers

For buyers, completion day is when the final balance is paid. The buyer’s solicitor arranges the transfer of the purchase price, which includes any deposit already paid and mortgage funds from the lender. Once the seller’s solicitor confirms receipt, the estate agent will be instructed to release the keys, allowing the buyer to move in.

After completion, the buyer’s solicitor will ensure the property is registered with the Land Registry in the buyer’s name. If purchasing with a mortgage, the lender’s interest in the property will also be recorded.

While completion day is often straightforward, delays can occasionally occur if there are issues with the transfer of funds. To avoid problems, buyers should confirm in advance that all necessary payments have been arranged, and sellers should ensure their solicitor is available to process the transaction promptly.

Timing and Logistics

Can You Exchange and Complete on the Same Day?

It is possible to exchange contracts and complete the sale on the same day, but this approach carries risks and is not always advisable.

Exchanging and completing on the same day means that the legal commitment and the transfer of ownership happen within hours of each other. While this can be useful for those in a hurry—such as cash buyers or those without a property chain—it can also create additional stress. Until contracts are exchanged, the transaction is not legally binding, meaning the sale could still fall through at the last moment. This uncertainty can make it difficult to arrange removals, secure mortgage funds in time, or finalise legal documents.

Some mortgage lenders also require a minimum period between exchange and completion to process the final release of funds, which can make same-day transactions impractical.

If a quick turnaround is necessary, buyers and sellers should speak to their solicitors in advance to ensure that everything is in place. However, where possible, allowing at least a few days between exchange and completion can provide more certainty and reduce the risk of last-minute issues.

What Time Does Completion Typically Take Place?

Completion officially takes place when the seller’s solicitor receives the full purchase amount from the buyer’s solicitor. This usually happens on the agreed completion date, with funds transferred via the banking system.

In most cases, completion occurs between mid-morning and early afternoon, typically between 11:00 AM and 2:00 PM. The exact timing depends on how quickly the funds are processed, whether there are delays in the banking system, and if there is a chain involved. If multiple transactions need to be completed on the same day (such as in a property chain), the process may take longer as solicitors wait for each stage to be finalised.

Completion typically takes place between 7 and 28 days after exchange of contracts, although this timeframe can vary depending on the buyer and seller’s circumstances. Some buyers, particularly those purchasing with a mortgage, may need extra time to ensure funds are released in time for completion.

Once the solicitor confirms that funds have cleared, the estate agent will be instructed to release the keys, and the buyer can move in. To avoid delays, it’s advisable for both buyers and sellers to ensure that all final arrangements, such as removals and utility transfers, are planned with some flexibility.

Choosing a Conveyancer

Finding a Conveyancer for a Smooth Exchange and Completion Process

Finding a Conveyancer for a Smooth Exchange and Completion Process

A reliable conveyancer plays a key role in ensuring that the exchange and completion process runs smoothly. They handle all the legal aspects of the transaction, from conducting property searches to transferring ownership with the Land Registry.

When selecting a conveyancer, it’s worth comparing quotes from different firms to find a service that offers both competitive pricing and efficiency. Some comparison services allow buyers and sellers to check reviews and assess turnaround times, helping them make an informed choice.

A good conveyancer will:

• Ensure all legal checks and property searches are completed promptly.
• Communicate clearly about any potential issues that may delay exchange or completion.
• Manage the transfer of funds, including deposit payments and mortgage funds.
• Handle the final registration of ownership with the Land Registry.

Since delays in the conveyancing process can hold up a transaction, it’s advisable to choose a firm with a strong track record of handling property sales efficiently. Buyers and sellers should also confirm fees in advance to avoid unexpected costs later on.

Protecting Your Interests

The Importance of Getting Everything in Writing

When buying or selling a property, having everything documented in writing is essential for avoiding disputes and ensuring clarity throughout the process. A well-documented paper trail can provide legal protection if any issues arise after exchange or completion.

The most important document is the sales contract, which sets out the agreed terms between the buyer and seller. This legally binding agreement details the purchase price, completion date, and any conditions attached to the sale. Once contracts are exchanged, neither party can back out without financial penalties.

Beyond the formal contract, it’s also wise to document any promises or agreements made during the transaction. For example:

• Any fixtures and fittings included in the sale should be clearly listed.
• Agreements about repairs or maintenance before completion should be written down.
• If a seller agrees to leave certain items behind, this should be specified to avoid misunderstandings.

Verbal agreements can easily be misinterpreted or forgotten, so getting everything in writing ensures both parties are on the same page. If any concerns arise, the written record can be used as evidence to resolve disputes.

Buyers and sellers should review all documents carefully before signing and seek legal advice if anything is unclear. A conveyancer can ensure that all agreements are properly documented and legally enforceable.

Getting Professional Help

How a Solicitor Can Assist with Exchanging Contracts and Completion

A solicitor or conveyancer plays a crucial role in guiding buyers and sellers through the legal aspects of a property transaction. Their expertise ensures that all necessary checks are completed, potential risks are identified, and the process moves forward smoothly.

During the exchange of contracts, a solicitor will:

• Review the contract and legal documents to ensure there are no hidden clauses or unfavourable terms.
• Carry out property searches, including local authority checks, environmental reports, and any other necessary investigations.
• Raise enquiries with the seller’s solicitor to clarify any outstanding issues, such as disputes over boundaries, planning permissions, or service charges for leasehold properties.
• Confirm that mortgage arrangements are in place and that all financial requirements have been met before exchange.

As completion approaches, a solicitor will:

• Handle the transfer of funds, ensuring that the buyer’s deposit and mortgage funds are paid securely to the seller’s solicitor.
• Register the buyer as the new owner with the Land Registry and ensure the mortgage lender’s interest is recorded if applicable.
• Calculate and arrange payment of Stamp Duty (if required).

By handling these legal and financial aspects, a solicitor ensures that buyers and sellers are fully protected throughout the process. Choosing an experienced solicitor with a strong track record can help avoid costly mistakes or delays.

Final Preparations

Preparing for Completion Day and Beyond

As completion day approaches, buyers and sellers should ensure everything is in place to avoid last-minute complications. Careful preparation can make the transition smoother and help prevent unnecessary delays.

One of the most important steps is making sure all necessary documents and payments are ready. Buyers should confirm with their solicitor that mortgage funds will be released on time and that the remaining balance, legal fees, and any outstanding costs have been accounted for. Sellers should check that they have provided all required paperwork, including property title documents and any warranties or guarantees related to the home.

Understanding the completion process in advance can also help reduce stress on the day. Buyers should know when and how they will receive the keys, and sellers should be aware of the deadline for vacating the property. Removal plans should be finalised, and arrangements for utilities, postal redirection, and council tax should be in place.

Lastly, it’s always worth taking the time to review all legal documents thoroughly. If anything is unclear, asking questions before signing can prevent potential problems later. A solicitor or conveyancer can provide clarity and ensure that all terms are fully understood before completion.

Conclusion

Recap of the Exchange of Contracts and Completion Process

The exchange of contracts is one of the most important steps in the home-buying process, as it marks the point where both the buyer and seller are legally committed to completing the sale. Once contracts are exchanged, neither party can withdraw without facing financial consequences.

This stage typically happens once all legal checks, property searches, and mortgage arrangements have been finalised. The buyer pays a deposit—usually 10% of the purchase price—at the time of exchange, and a completion date is set. From this point onward, preparations for moving day can begin, including arranging removals, securing buildings insurance, and ensuring all payments are in place.

On completion day, the remaining balance is transferred, legal ownership is registered, and the buyer collects the keys. Whether buying or selling, having a clear understanding of this process helps ensure a smooth and stress-free transition. Working with an experienced solicitor or conveyancer can make the entire process easier, from exchange to moving in.