What happens when you exchange house contracts?
Buying a home is often one of the biggest financial and emotional decisions you will ever make. From the excitement of finding the right property to the stress of securing a mortgage, the house-buying process can feel overwhelming at times. One of the most significant milestones along the way is the exchange of contracts.
This is the moment when your purchase shifts from being an agreement in principle to a legally binding commitment. Up until this point, either you or the seller can still change your mind, but once contracts are exchanged, both parties are legally obliged to go through with the sale.
At ONP Solicitors, we know that understanding the process can give you confidence and peace of mind. This article explores what happens during the exchange, the steps leading up to it, the risks to be aware of, and how our team supports you at every stage.
Understanding the house-buying process
Before looking closely at contracts, it’s worth stepping back to see where this fits within the wider house-buying process.
The early stages
Instructing a solicitor – The process begins when you choose a conveyancer to represent you. They will handle all the legal elements of your purchase.
Property searches – Local authority, environmental, drainage, and other searches reveal important details about the property.
Mortgage application – If you’re relying on a mortgage, your lender will carry out a valuation and issue a formal offer.
Surveys – Independent surveys highlight any structural issues or risks you should know about before committing.
Why these steps matter
Each of these elements lays the groundwork for a smooth exchange. They ensure that you know exactly what you are buying, how you will pay for it, and what legal obligations you are taking on.
Preparing for the exchange of contracts
The exchange does not happen overnight. A lot of preparation is needed to make sure both sides are ready.
Legal and financial checks
Reviewing documents – Your solicitor will check the title deeds, draft contract, and information forms provided by the seller.
Confirming mortgage funds – Your mortgage offer must be in place, and your lender must be satisfied with the searches and valuation.
Arranging insurance – Buildings insurance must be ready to start from the date of exchange, as you become legally responsible for the property.
Deposit funds – Typically, 10% of the purchase price is due on exchange, although this can sometimes be negotiated.
Timing considerations at the exchange of contracts
Delays at this stage often arise from missing paperwork or slow responses from third parties. Having an experienced solicitor chasing matters can prevent your purchase from stalling.
The legal moment
The exchange of contracts takes place between solicitors, usually over the phone in a recorded conversation. Each solicitor reads out the contract, confirms it is identical, and then sends the signed copy to the other side.
What makes it binding
Once this has been done, the deal becomes legally binding. The buyer must buy, and the seller must sell. Neither can walk away without serious legal and financial consequences.
Key features of exchange
Deposit paid – Normally, 10% of the price is transferred to the seller’s solicitor.
Completion date set – Both sides agree on the day when the balance will be paid and keys handed over.
Contract terms locked in – From this point, the contract terms cannot be changed.
The role of ONP Solicitors
At ONP Solicitors, we make sure that everything is ready before contracts are exchanged, so you can proceed with confidence.
Before exchange
- We ensure that all searches are complete and that any queries about the property are resolved.
- We check your mortgage offer and liaise with your lender to confirm funds.
- We explain the contract clearly to you, highlighting any unusual clauses or obligations.
During exchange
- We handle the formal exchange with the seller’s solicitor.
- We transfer the deposit securely.
- We confirm the agreed completion date and provide you with a written summary.
After exchange
- We prepare for completion by ordering funds from your lender.
- We calculate final statements showing what you need to pay.
- We line up everything needed for the day of completion, so you can focus on moving.
Risks before exchange
One of the biggest frustrations in the house-buying process is that until contracts are exchanged, either party can withdraw without penalty.
Gazumping
This happens when a seller accepts a higher offer from another buyer at the last minute. While upsetting, it is legal before contracts are exchanged.
Changing circumstances
Buyers may lose a mortgage offer, sellers may change their mind, or unexpected survey results may arise. Having a solicitor who moves quickly can reduce the risk of losing your dream home.
After the exchange of contracts
Once the exchange has taken place, the countdown to completion begins.
Completion day
On the agreed day, your solicitor transfers the remaining funds to the seller’s solicitor. Once the money is received, you can collect the keys and move in.
Legal finalisation
After completion, your solicitor handles payment of Stamp Duty Land Tax and registers the property in your name with HM Land Registry. You then receive confirmation that you are the legal owner.
Typical timeline
While every transaction is different, here’s a rough guide:
| Stage | Timeframe |
| Initial instruction | Day 1 |
| Searches and mortgage offer | 2-6 weeks |
| Up to exchange of contracts | 6-10 weeks |
| Completion after exchange | 1-2 weeks |
ONP Solicitors use modern technology to keep these timescales as efficient as possible, giving you updates in real time.
Why is exchange so important
The exchange of contracts is the turning point in the house-buying process. It marks the moment of certainty: after months of preparation, you can finally plan your move with confidence.
With ONP Solicitors by your side, you benefit from experienced conveyancers, clear communication, and proactive management of the entire process. We ensure that your exchange happens smoothly, your interests are protected, and your purchase moves to completion without unnecessary stress.
Get in touch with us or find a quote to get started today.
