Money Guides
⏱ 3 min read
📅 Updated Apr 2026
Exchange and Completion UK: What Happens and When? 2026
What is exchange of contracts?Exchange of contracts is the point at which the property sale becomes legally binding. Both buyer and seller sign identical copies of the contract, which are then exchanged between solicitors. Once exchange has taken place, neither party can pull out without financial penalty. The buyer pays their deposit (typically 10% of the purchase price) at exchange. Exchange = legally binding. Completion = when you get the keys. Between exchange and completion (typically 1 to 4 weeks), both parties are contractually committed. What is completion?Completion is the final step in the property purchase. On the completion date, your mortgage lender releases the funds to your solicitor, who transfers the full purchase price to the seller solicitor. The seller vacates the property, keys are released (usually via the estate agent), and legal ownership transfers to you. Exchange vs completion: key differences| Event | Exchange of contracts | Completion |
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| When does it happen? | Typically 1 to 4 weeks before completion | The agreed moving day | | What becomes binding? | Both parties legally committed to the transaction | Ownership transfers; keys released | | Money paid? | Deposit (typically 10%) paid by buyer | Remaining balance transferred; mortgage drawn down | | Can you pull out? | No — severe financial penalties apply | Not applicable — transaction complete | | What if seller pulls out? | Buyer keeps deposit; can sue for losses | N/A | | What if buyer pulls out? | Forfeits deposit; may face further damages claim | N/A |
How long between exchange and completion?The gap between exchange and completion is agreed by both parties. Common timescales are: - Same day exchange and completion — rare; used in urgent situations; risky as less time for checks
- 1 to 2 weeks — common for straightforward transactions with chains already resolved
- 2 to 4 weeks — standard; allows time to arrange removals and final checks
- Longer gaps — sometimes used in new-build purchases or when part of a complex chain
What happens between exchange and completion?- Book removal company for completion day
- Insure the property from exchange — buildings insurance should start at exchange, not completion
- Notify utility suppliers of your moving date
- Arrange mail redirection
- Final property inspection (snagging) immediately before completion
- Your solicitor draws down your mortgage funds on completion day
What can go wrong between exchange and completion?- Seller fails to vacate — rare but possible; solicitors manage this
- Mortgage offer lapses — offers typically last 3 to 6 months; if completion is delayed beyond this, you may need to reapply
- Property damage — if the property is damaged between exchange and completion, the seller is usually responsible for reinstatement
- Bridging gaps in chains — if another transaction in the chain collapses, it can delay or abort completion
Verdict Insure from exchange, not completion The most common mistake buyers make is not insuring the property from exchange. Once contracts are exchanged, you have a legal interest in the property and bear risk if it is damaged or destroyed before completion. Get buildings insurance in place on exchange day. Frequently asked questionsCan you back out after exchange? You can withdraw after exchange but you will forfeit your deposit (typically 10% of the purchase price) and may face a damages claim from the seller for any additional losses they suffer as a result. What happens on completion day? Your solicitor receives the mortgage funds from your lender, transfers the full purchase price to the seller solicitor, and notifies you when to collect the keys — usually from the estate agent. The whole process typically completes by early afternoon. Do I need to be present at exchange or completion? No. Both exchange and completion are handled by solicitors on your behalf. You do not need to attend — your solicitor will call or email you when exchange and completion have occurred. How much deposit do you pay at exchange? Typically 10% of the purchase price. If your deposit is less than 10% (e.g. 5%), your solicitor may need to use a deposit guarantee or negotiate with the seller to accept a lower deposit at exchange. |
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Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.
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