20/05/2026
These are two distinct stages in the conveyancing process, and understanding the difference is essential when buying or selling property.
The exchange of contracts marks the point at which a conveyancing transaction becomes legally binding. Contracts are exchanged between the buyer's and seller's solicitors, and a deposit (usually 10% of the purchase price) is transferred from the buyer to the seller. Once contracts are exchanged, both parties are legally committed to the transaction. If either party pulls out after the exchange, they face significant financial penalties.
Completion usually takes place a few weeks later and marks the property's official change of ownership. On completion day, the remaining balance of the purchase price is transferred, keys are handed over, and you can move in. This is the day you become the legal owner of the property.
The gap between exchange and completion gives both parties time to finalise arrangements, organise removals, and ensure all funds are in place. In some cases, exchange and completion can happen on the same day, though this is less common and requires careful coordination.
For more detailed information about the conveyancing process, read our Step-by-Step Guide to Buying a Home here: https://bit.ly/4swJebZ
