When buying a house, the exchange of contracts is a crucial step in the process that makes the sale legally binding for both the buyer and the seller. Until contracts have been exchanged, both parties can pull out of the deal without incurring serious costs. Heres what happens during the exchange of contracts:

• Both the buyer and the seller sign copies of an identical contract.
• The buyer pays a deposit, typically 10% of the purchase price, to the sellers solicitor.
• The lawyers for both parties exchange the signed contracts.
• The completion date is agreed upon by all parties involved in the sale, usually scheduled for a few weeks after exchange.

Its important to note that exchanging contracts is legally binding, so buyers should be certain they want to go ahead before signing anything. If the seller pulls out before the exchange of contracts, the buyer has no legal right to recover any costs from them. The time it takes to go from exchange to completion is decided by the buyer and seller, and its typically a week.