Exchanging contracts is a crucial milestone in the home-buying and selling journey, but when a property chain is involved, things can become complicated. Here’s everything you need to know about how the exchange process works, what to expect, how to prepare, and how to keep things moving smoothly in a chain.
Understanding the exchange of contracts
Exchanging contracts is the point at which the sale becomes legally binding for both the buyer and the seller. Up to this point, either party can withdraw without penalty (other than costs incurred for surveys, legal work, etc.).
The contract contains:
- The agreed sale price
- Property boundaries
- Fixtures and fittings included
- Legal rights or restrictions (e.g., footpaths or usage rules)
- Planning limitations
- Property services (e.g., drainage, gas)
- The agreed completion date
The seller’s solicitor prepares the contract, which is reviewed by the buyer’s solicitor. Only when both parties are fully satisfied and the terms are agreed upon does the exchange take place.
Related: What Happens After You Accept An Offer
Why is exchanging contracts important?
- Legal commitment – Once contracts are exchanged, both parties are legally bound to complete the transaction. Withdrawing at this point usually results in financial penalties.
- Certainty – Buyers and sellers can move forward with confidence, knowing the deal is secure.
- Security – The risk of sudden withdrawals is eliminated, offering peace of mind.
- Clear timeline – A fixed completion date is agreed upon, allowing all parties to make solid plans.
- Financial readiness – Most mortgage lenders will only release funds after contracts are exchanged.
- Chain synchronisation – In a property chain, exchange ensures all linked transactions are aligned and ready to proceed together.
What does it mean to be in a property chain?
A property chain is a series of linked transactions where each buyer and seller depends on the success of the other.
- You’re in a chain if you need to sell your home to fund your next purchase
- The chain only moves as fast as its slowest link
- A delay anywhere in the chain can affect every transaction
Who might be in the chain?
- First-time buyers – No property to sell, often at the start of the chain
- Homeowners – Moving up or down the ladder
- Investors/Landlords – Buying or selling buy-to-let properties
- Developers – Selling new-build homes
How long does an exchange take in a chain?
While the actual exchange of contracts takes only a few minutes between conveyancers, reaching that point typically takes 8 to 12 weeks, and longer in a property chain.
Common causes of delay in a chain:
- Slow or missing paperwork
- Delays in mortgage approvals
- Issues from surveys or valuations
- Ongoing legal enquiries
- Last-minute renegotiations
- Withdrawal by a buyer or seller
In longer chains, even small setbacks can cause significant delays. In some cases, the process may stretch over several months.
When is the exchange done?
Contracts are exchanged when all parties in the chain are fully prepared and ready to proceed. This typically includes:
- Mortgage offers secured, and all conditions met
- Legal searches and checks completed
- Surveys and enquiries were resolved satisfactorily
- Agreement on fixtures and fittings
- Buyer’s deposit paid
- Completion date confirmed
- Both solicitors are in a position to proceed
Keep in mind, the completion date isn’t fixed until contracts are officially exchanged. In a chain, every party must be prepared, so even minor delays can impact the timeline. Patience and flexibility are essential.
What happens after the exchange?
- The contract is legally binding
- All parties in the chain are committed to completing
- Buyers can now secure buildings insurance
- Moving arrangements can be finalised
The final stage is completion, where ownership and responsibility for the property are formally transferred from the seller to the buyer.
Why exchanges get delayed
In a property chain, delays can impact everyone. If contracts aren’t exchanged within the legal release window, the process may need to be repeated the next working day.
Common reasons for delay include:
- Incomplete or missing paperwork
- Delays in receiving search results
- Issues raised in survey reports
- Slow mortgage approvals
- Last-minute renegotiations
- Changes in a buyer’s or seller’s circumstances
- Lack of coordination between solicitors in the chain
What happens when the property chain breaks?
Breaking the chain occurs when a buyer or seller withdraws or faces significant delays, causing the entire sequence of linked transactions to collapse. This can happen due to:
- A buyer or seller pulling out
- Financial issues or failed mortgage approvals
- Legal or survey complications
- Delays that cause others in the chain to back out
To prevent the chain from falling apart, some parties may choose to:
- Move into temporary accommodation to keep their sale or purchase moving
- Use a bridging loan to complete their purchase while waiting to sell their existing home
Keeping the chain intact often requires flexibility, quick decision-making, and a proactive approach.
What are bridging loans?
A bridging loan is a short-term financing option that helps buyers complete the purchase of a new home before selling their existing one. It’s often used to prevent a property chain from collapsing due to timing issues.
Bridging loans can be useful when:
- You need to move quickly, but your current sale hasn’t been completed
- You want to avoid losing your onward purchase due to delays
- You’re temporarily covering two mortgages
However, these loans typically come with higher interest rates and fees, so it’s important to seek professional financial advice before proceeding.
Effective steps for streamlining the exchange process
Exchanging contracts in a chain requires preparation, coordination, and flexibility. Here’s how to keep the process moving:
Be organised and proactive
- Have your mortgage offer approved and contract signed
- Confirm what’s included in the sale (e.g., fittings)
- Pay your deposit to your solicitor
- Arrange buildings insurance
- Agree on a completion (moving) date
- Gather all necessary documents early: ID, mortgage details, property forms, and search results
Work with trusted professionals
Choose experienced solicitors, estate agents, and surveyors to guide you through the process and avoid costly mistakes, especially if porting a mortgage, as early repayment penalties can apply.
Communicate clearly
Stay in regular contact with your solicitor, agent, and the other party. Timely updates help resolve issues quickly and keep everyone aligned.
Be patient and flexible
Chains often face delays. Your solicitor can’t proceed until all parties are ready. Stay responsive and be prepared for last-minute changes.
Final steps in the exchange
- Once all parties are ready, solicitors exchange contracts—usually by phone
- A legally binding agreement is formed
- The completion date, typically 1–2 weeks later, is then locked in
- Everyone moves on the same day, so timing coordination across the chain is essential
Wrapping up: confidently navigate your property exchange
Exchanging contracts is a crucial step that brings legal certainty to your property transaction but it’s not the end. Completion marks the true finish line, when ownership changes hands and keys are exchanged.
While chains can add complexity, staying organised, communicating well, and choosing the right professionals make all the difference. With a clear understanding of the process, you’ll be well-prepared to manage any bumps along the way.
If you’re buying or selling and want expert support throughout, Newton Fallowell is here to help. From listing to completion, we’re committed to making your move smooth, secure, and successful.
Get in touch today to start your journey with confidence.
