Exchange of Contracts

The moment both buyer and seller sign identical contracts and the sale becomes legally binding.

Exchange of contracts is the legal moment a property sale becomes binding. Each party signs an identical copy of the contract; the deposit is paid (usually 10%); and the signed copies are physically or electronically exchanged. After exchange, the buyer is legally committed to the purchase subject only to cooling-off (if applicable) and any conditional clauses (finance, building inspection).