What’s the Difference between Exchange & Completion?

Year-on-year, more properties are being bought and sold in the UK. According to Zoopla, nearly 1.2 million houses were sold in 2025; despite this, many still find the process daunting.

Whether you’re a first-time buyer or settling into your forever home, the house buying and selling process can be a challenging and confusing one, with lots of paperwork and industry terminology you may not understand. 

Two terms you are likely to hear towards the end of the process are exchange and completion.

Put simply, exchange of contracts is when you become legally committed to the transaction, while completion is when the purchase is completed, and the buyer can usually take possession of the property.

In this blog, our experts will explain the difference between exchange and completion, what happens between the two and what you need to do to prepare.

What Does Exchange of Contracts Mean?

Exchange of contracts is the point at which the agreement to buy and sell the property becomes legally binding.

Before exchange, either the buyer or seller can generally withdraw from the transaction without being in breach of the contract, although there may be costs involved and other consequences depending on the circumstances.

Before contracts can be exchanged, your solicitor will usually need to make sure that the necessary legal work has been completed. This can include dealing with searches and enquiries, reviewing the contract and title, and ensuring that any mortgage arrangements are in place.

Once both parties are ready to proceed, the buyer’s and seller’s solicitors formally exchange contracts. The contract will set out the agreed terms of the transaction, including the completion date. When the exchange takes place depends on how quickly the conveyancing is carried out and on the circumstances of the case – no two transactions are the same.

After exchange, both parties are legally committed to the transaction. If either party fails to comply with the contract, there can be financial and legal consequences.

The buyer will also usually pay a deposit on exchange. The exact arrangements can vary, particularly where there is a chain of linked property transactions.

What Does Completion Mean?

Completion is the stage at which the purchase money is paid and the transaction completes.

On the agreed completion date, the buyer’s solicitor transfers the purchase funds to the seller’s solicitor. Once the seller’s solicitor has received the money and confirmed that completion has taken place, the keys will normally be released by the estate agent.

The buyer can then take possession of the property and, in most cases, move in.

Although completion is when the transaction itself takes place, the formal registration of the buyer as the new registered owner is normally dealt with after completion at HM Land Registry.

The time between exchange and completion will depend on the circumstances of the transaction. Sometimes exchange and completion take place on the same day, while in other cases there may be several days or weeks between them.

Is Exchange the Same as Completion?

No. Exchange and completion are two different stages of the conveyancing process.

The easiest way to remember the difference is:

• Exchange = legally committed
• Completion = money transferred and the transaction completed

Here’s a breakdown of these differences:

What Happens Between Exchange & Completion?

Once contracts have been exchanged, the transaction is legally binding. This means there is usually a period of time when both parties can make their final preparations for completion.

Depending on your circumstances, this may include:

• Prepare for Moving Day: Both the buyer and seller will need to make arrangements for the move. This could include booking a removal company, arranging storage and confirming arrangements for collecting or handing over the keys.
• Finalising completion arrangements: Your solicitor will prepare for completion, including confirming the amount required to complete and dealing with any final paperwork or statements. As a buyer, you may need to make sure your solicitor has the funds required to complete in good time.
• Utilities & Insurance: Buyers and sellers should make the appropriate arrangements with their utility providers and insurers. It is particularly important to check your buildings insurance arrangements carefully, as the position regarding risk and insurance can change on exchange and will depend on the terms of the contract and the property. Your solicitor will be able to explain what applies to your particular transaction.

What Happens If Completion Is Delayed?

Although the completion date is agreed when contracts are exchanged, sometimes problems can arise which prevent completion from taking place as planned.

For example:

• Banking or payment issues 
• A problem elsewhere in a property chain 
• Delays with mortgage funds 
• An issue with the property or paperwork 
• Practical or logistical problems on moving day 

If completion does not take place on the agreed date, this can amount to a breach of contract and may have financial or legal consequences.

Your solicitor will communicate with the other side’s solicitor and advise you on your options and the appropriate next steps. The consequences will depend on the terms of the contract and the circumstances of the delay.

Exchange vs Completion: A Simple Example

Here’s an example of how the exchange and completion process could take place to give you a better understanding of how each step works.

• Monday: Buyer and seller exchange contracts
  • The agreed completion date is Friday
  • The transaction is now legally binding
• Tuesday to Thursday: Prepare for the move
  • The seller starts packing to move out of the property, and informs the utilities of the move
  • The buyer starts packing to move into the property, and contacts the utility companies to set up the accounts
• Friday: Purchase funds are transferred
  • Completion takes place
  • Buyer receives the keys and can move into the property

What Do You Need to Do Before Exchange & Completion?

Before exchange

Before contracts are exchanged, you should:

• Make sure you are happy with the property and the terms of the contract. 
• Make sure your mortgage arrangements are in place, if applicable. 
• Raise any questions or concerns with your solicitor. 
• Provide any information or documents your solicitor has requested. 
• Make sure you understand the proposed completion date. 
• Tell your solicitor about any circumstances that could affect your ability to complete. 

Most importantly, make sure you are happy to proceed before giving your solicitor authority to exchange contracts. Once contracts have been exchanged, you are legally committed to the transaction.

Before completion

Once contracts have been exchanged, you should:

• Arrange your removals. 
• Confirm when and where you will collect the keys. 
• Make sure your solicitor has everything they need to complete. 
• Ensure you have made arrangements to vacate the property if you are selling. 
• Take final meter readings where appropriate. 
• Notify utility providers and other relevant organisations of your move. 
• Make sure you have your buildings and contents insurance arrangements in place as appropriate.

How Harding Evans Can Help

Exchange and completion can seem confusing, particularly if you are buying or selling a property for the first time. Understanding the difference between the two can help you feel more prepared and confident as you approach the final stages of your move. 

At Harding Evans, our residential property team can guide you through the conveyancing process from start to finish, explaining what is happening at each stage and helping you understand what you need to do.

Whether you are buying a property or selling your property, we are here to help make the process as straightforward and transparent as possible.

As founding members of Move Wales, we are committed to helping people navigate the property-moving process with confidence.

If you are thinking about buying or selling a property and would like advice from our residential property team, get in touch with us today.