What does “Exchange of Contracts” mean?
As soon as the legal work is completed by each lawyer in the chain, contracts can be exchanged. The completion date is agreed by everyone in the chain and written onto the contract that you signed. The lawyers exchange contracts on the telephone and from that moment the contract to buy and sell the property is binding and you have bought or sold your property. Your deposit is sent to your Seller’s lawyer on the same day. Once contracts have been exchanged there is no turning back. Neither you nor your seller or buyer can change their minds with out having to pay substantial compensation.
