What does 'Exchange of Contracts' mean when buying a property?
Find out what Exchange of Contracts means when you are buying a property. 'What does Exchange of Contracts mean?' plus over 150 other property related terms and jargon in plain English
Exchange of Contracts
Also sometimes referred to simply as "Exchange".
This is the moment when the buyer and seller agree legally to buy and sell and a date when the legal ownership transfer of the property (completion) is set.
This is not the date your offer is accepted (see below).
Completion can be on the same day as exchange of contracts or at any time after - normally it is 7 days after exchange.
To understand how Exchange of Contracts fits into a property purchase the steps are:
- Sale Agreed - you and the seller have agreed a sale price. The property is now .
- Neither you or the seller are legally obliged to go through with the deal at this point.
- Various documents will now need to be collected and inspected to insure the property is everything you think it is
- You may need to organize a mortgage at this point if you are borrowing to buy.
- Exchange of Contracts - both the buyer and you become legally bound to go through with the transaction. You normally pay a deposit of 5-10% at this point.
- Completion - you take legal ownership of the property
To find out the full details of every step involved in buying a property and how you can stay in control of them pick up a copy of my ebook How to Really Buy a Property.
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- Agreement in Principle
- Chain Free Buyer
- Chain Free Property
- Contract Race
- Completion
- DX System
- Exchange of Contracts
- Further Enquiries
- Repossession
- Sold Subject to Contract
- Sold Subject to Survey
- Subject to Contract
- Tenanted Property
- Contract
- Off Plan
- Retention
- Negotiator
- Property Chain
- Joint Sole Agency
- Attended Exchange
- Conditional Exchange
- Under Offer
- Gazump
- Fall Through
- Pre Arranged Mortgage
- Draft Contract
- Ghost Gazumping
- Sale Agreed
- Upward Chain
- Cash Buyer Only
- Bridging Loan
- Deal Chasing
- Time Costs Deals
- Pulling Out
- Gazumping Insurance