Ready to Exchange? Final Checks Every Buyer Must Complete

Reaching the exchange of contracts is an exciting moment when buying a house, but it is also the point where the purchase becomes legally binding.

Before you authorise your conveyancer to exchange, you should be satisfied with the property, mortgage, survey, searches, legal documents, deposit and completion arrangements.

Key point: In England and Wales, you can normally withdraw or renegotiate before exchange. After exchange, pulling out can mean losing your deposit and paying additional costs or compensation.

This guide focuses mainly on the home-buying process in England and Wales. Scotland uses the conclusion of missives, while Northern Ireland has a different conveyancing process.


What Does Exchange of Contracts Mean?

Exchange happens when the buyer’s and seller’s conveyancers formally exchange the signed contracts and confirm the agreed completion date.

Signing the contract does not, by itself, mean contracts have been exchanged. Your conveyancer will usually ask for your final authority before carrying out the exchange.

Once exchange takes place:

  • The buyer is legally committed to purchasing the property.
  • The seller is legally committed to selling it.
  • The purchase price is fixed in the contract.
  • The completion date becomes legally agreed.
  • The exchange deposit becomes payable.
  • The buyer may become responsible for insuring the property.

Who Does What Before Exchange?

Person Main Responsibility What the Buyer Should Confirm
Buyer Reviews the information and makes the final decision. You understand the risks, costs and completion arrangements.
Conveyancer Checks the title, contract, searches, enquiries and lender requirements. You have received and understood the report on title.
Mortgage lender Issues the formal mortgage offer and sets lending conditions. The offer is valid and covers the agreed purchase price.
Mortgage adviser Helps with the mortgage application and outstanding lender requirements. No application documents or conditions remain outstanding.
Surveyor Reports on visible condition, defects and further investigations. Serious findings have been investigated before exchange.
Estate agent Communicates between the buyer, seller and property chain. The completion date and agreed property arrangements are understood.
Seller Answers enquiries and supplies the agreed property information. Repairs, fixtures, vacant possession and other promises are recorded.

Final Checks Before Exchange of Contracts

1. Check Your Formal Mortgage Offer

A mortgage agreement in principle is not enough. You should have a valid formal mortgage offer for the correct property, purchase price and loan amount.

Check the expiry date, special conditions, retention amounts and whether the lender requires repairs, specialist reports or additional documents.

Avoid taking new credit, changing employment or moving large sums of money without discussing the possible effect on your mortgage application.

2. Read the Conveyancer’s Report on Title

Your conveyancer should explain what you are buying and any legal matters affecting the property. Check the ownership, tenure, boundaries, rights of way, parking rights, restrictive covenants and responsibilities for shared areas.

Do not treat the report as a formality. Ask questions about anything you do not understand before giving authority to exchange.

3. Review the Searches and Enquiries

Your conveyancer will usually review local authority, drainage and environmental searches and raise enquiries with the seller’s conveyancer.

Important issues may include planning restrictions, road adoption, public drains, flood risk, contaminated land, nearby developments and rights affecting the property.

Ask whether any enquiries remain unanswered and whether your conveyancer considers the replies satisfactory.

4. Deal With Survey Findings

Make sure you have read the complete property survey and spoken to the surveyor about serious or unclear findings.

Arrange specialist inspections where necessary, such as electrical, gas, drainage, damp, roof or structural checks. Obtain realistic repair quotations before deciding whether to proceed, renegotiate or ask the seller to complete work.

Do not exchange while relying on an unconfirmed repair estimate. Once contracts are exchanged, your negotiating position is greatly reduced.

5. Check Leasehold or Estate Charges

For a leasehold property, check the remaining lease term, service charges, ground rent, reserve fund, building insurance, restrictions and planned major works.

Review the LPE1 information, recent accounts, meeting minutes and any Section 20 major works notices. A major works bill can sometimes arrive after completion.

For a freehold property on a managed estate, check estate charges, management arrangements, transfer fees and how future charges may increase.

6. Confirm Fixtures, Fittings and Agreed Repairs

Check the fixtures and contents form carefully. Confirm whether appliances, flooring, curtains, light fittings, sheds, electric vehicle chargers and garden items are included.

Any agreed repairs or replacements should be recorded in writing through the conveyancers. A verbal promise from the seller or estate agent may be difficult to enforce.

7. Arrange a Final Viewing

Request another viewing before exchange if the property has been empty, repairs were promised or significant time has passed since your last visit.

Check for new damage, leaks, removed fixtures, unauthorised occupants and major changes in condition. Report concerns to your conveyancer before exchange.

8. Prepare the Exchange Deposit

The contract deposit is commonly 10% of the purchase price, although a smaller amount may sometimes be agreed.

Your mortgage deposit and exchange deposit are connected but are not always transferred at the same time. Buyers using a 5% mortgage deposit should ask their conveyancer whether a reduced exchange deposit has been agreed.

Make sure cleared funds reach the conveyancer before the exchange deadline. Gifted deposits, Lifetime ISA funds and overseas money may require additional evidence or processing time.

9. Put Buildings Insurance in Place

For many house purchases, buildings insurance should begin from exchange because the buyer may carry the risk from that point.

Your lender may specify the required cover and rebuilding amount. For a leasehold flat, buildings insurance is often arranged through the freeholder or management company, but your conveyancer should confirm this.

10. Agree a Realistic Completion Date

There is no compulsory gap between exchange and completion. They can happen on the same day or be separated by several days or weeks.

Choose a date that allows enough time for mortgage funds, removals, work commitments and the property chain. Avoid booking non-refundable arrangements until contracts have exchanged.

11. Check the Money Needed for Completion

Ask your conveyancer for an estimated completion statement showing the deposit, remaining purchase money, Stamp Duty Land Tax or Land Transaction Tax, legal fees and other charges.

Confirm when the balance must be transferred and verify bank details using a trusted telephone number. Property transactions are a frequent target for payment-redirection fraud.

12. Give Clear Authority to Exchange

Your conveyancer should confirm the purchase price, completion date, deposit and any special contract conditions before requesting your authority.

Do not feel pressured by the seller, estate agent, developer or property chain. Only authorise exchange when you understand the documents and are ready to become legally committed.


Do Not Exchange If These Issues Remain

  • Your formal mortgage offer has not been issued or contains unresolved conditions.
  • You have not received or understood the conveyancer’s report.
  • Important legal enquiries remain unanswered.
  • Serious survey findings have not been investigated.
  • The deposit or completion funds are not ready.
  • Buildings insurance cannot be arranged where required.
  • The completion date does not work for you.
  • Agreed repairs or included items have not been recorded.
  • Leasehold service charges or major works remain unclear.
  • The property or legal title does not match what you expected to buy.

What Happens on Exchange Day?

  1. Your conveyancer confirms that you still want to proceed.
  2. The buyer’s and seller’s conveyancers agree the final contract details.
  3. The conveyancers formally exchange contracts.
  4. The completion date becomes legally fixed.
  5. The exchange deposit is transferred or held under the contract arrangements.
  6. Your buildings insurance begins where required.
  7. The conveyancer starts preparing for completion.

After exchange, your conveyancer will normally request mortgage funds, complete final legal searches, prepare the completion statement and arrange the transfer of the remaining purchase money.


What If You Pull Out After Exchange?

Withdrawing after exchange is very different from withdrawing before exchange.

A buyer who fails to complete may lose the deposit and could face interest, legal costs and a claim for additional losses. A seller who fails to complete may also face legal and financial consequences.

If an emergency or serious problem arises after exchange, contact your conveyancer immediately rather than contacting the seller directly or making assumptions about your rights.


Final Buyer Checklist

  1. Formal mortgage offer received and checked.
  2. Survey and specialist inspections completed.
  3. Searches and legal enquiries reviewed.
  4. Report on title read and understood.
  5. Leasehold or estate charges checked.
  6. Fixtures, fittings and repairs confirmed.
  7. Final viewing completed where needed.
  8. Exchange deposit available as cleared funds.
  9. Buildings insurance arranged where required.
  10. Completion date agreed and practical.
  11. Completion costs and Stamp Duty budgeted.
  12. Bank details independently verified.
  13. Signed documents returned.
  14. Final authority given only when fully satisfied.
Final takeaway: Exchange should happen because every important check is complete, not simply because everyone else wants the transaction to move faster.

Official and Professional Sources