What does 'Conditional Exchange' mean?

Conditional Exchange

Where both the buyer and seller want to be more firmly tied into the deal a conditional exchange can be arranged. This is Exchange of Contracts subject to certain terms or events. At this time the buyer will need to give his solicitor funds for the deposit and should he then pull out of the purchase (unless the conditions of the exchange are not met) he will loose these funds to the seller. The conditions laid down can vary and be small items such as confirmation of planning permission for a change on the property or substantial such as the terms of a lease.