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exchange vs. completion

published: march 20, 2025

exchange and completion are two critical milestones in the property buying process. understanding the difference between them is essential for first-time buyers navigating the conveyancing journey.

exchange of contracts

exchange of contracts is the point at which both the buyer and seller become legally committed to the property transaction. before this point, either party can walk away without legal consequences (though there may be costs incurred).

what happens at exchange?

  • both parties sign identical contracts
  • the buyer pays a deposit (typically 10% of the purchase price)
  • a completion date is set
  • the agreement becomes legally binding

completion

completion is the final stage of the property transaction when ownership legally transfers from the seller to the buyer. this is the day when you get the keys and can move into your new home.

what happens at completion?

  • the buyer's solicitor transfers the remaining funds to the seller's solicitor
  • the seller's solicitor confirms receipt of funds
  • keys are released to the buyer
  • ownership legally transfers to the buyer

the gap between exchange and completion

the time between exchange and completion can vary from simultaneous (happening on the same day) to several weeks apart. the typical gap is 1-2 weeks, but this can be negotiated between the parties.

what happens during this period?

  • the buyer finalizes mortgage arrangements
  • the buyer arranges buildings insurance (which must be in place from exchange)
  • both parties prepare for the physical move
  • final checks are completed

risks and considerations

after exchange:

once contracts are exchanged, backing out will have serious financial and potentially legal consequences:

  • buyers may lose their deposit
  • sellers may be sued for specific performance (forcing them to sell)
  • the party withdrawing may be liable for costs incurred by the other party

delays to completion:

if completion is delayed beyond the agreed date:

  • the party causing the delay may have to pay compensation
  • interest may be charged on the outstanding balance
  • moving arrangements may need to be rescheduled

how propi helps with exchange and completion

at propi, we manage the exchange and completion process meticulously, ensuring all necessary steps are taken at the right time. we keep you informed throughout, explain what's happening in plain english, and work to coordinate all parties to minimize delays and stress.