20th June 2024 ❘

Residential Conveyancing – What is the difference between exchange of contracts and completion?

What is the difference between exchange of contracts and completion?

Our Residential Conveyancing team continues to answer the questions it receives most often… This week: What is the difference between exchange of contracts and completion?

The simplest answer is: completion equals keys, moving in and ownership and you cannot do any of these on exchange of contracts alone.

Exchanging contracts is what makes the transaction legally binding. Up until exchange, either a seller or a buyer can change their mind, pull out and offer on another property, but once you have exchanged contracts, you are committed.

If you decide to withdraw after exchange, this will have serious financial consequences and you risk losing your deposit of 10% of the purchase price which you pay on exchange, together with interest, legal costs and possible other fees.

When you exchange contracts, you agree to fix the completion date and therefore you have the certainty of knowing exactly when you will be moving.

More questions?  You can get in touch with our Residential Conveyancing team here and they’ll be happy to help.