When you’re buying or selling a property that’s part of a chain, the exchange of contracts can feel like a game of dominoes — one move triggers the rest. But how exactly does it all work, and what should you watch out for? Here’s a guide to help you understand the process and keep your move on track.
What does exchange of contracts mean?
The exchange of contracts is the legal moment when a property sale becomes binding. Each party’s solicitor swaps signed contracts, confirming the agreement and setting a completion date. It’s the point where everyone involved can breathe a little easier, although there’s still work to do before moving day.
Why do we exchange contracts?
It’s all about legal certainty. Once contracts are exchanged, both the buyer and seller are committed. The buyer pays a deposit (typically 5–10%), and pulling out after this stage can have serious financial consequences. It protects everyone and gives all parties the confidence to prepare for completion.
What does it mean to be in a property chain?
A property chain is when multiple transactions are linked because each person is buying and selling a home. For example, a first-time buyer purchases from a seller who is buying another property from someone else — and so on. The chain must all progress together because each sale depends on another.
How long does exchanging contracts take in a chain?
It varies. If all parties are responsive and there are no issues, it could be a matter of weeks. But in a long chain with multiple buyers and sellers, it may take two to three months, sometimes longer. Everything has to line up, from mortgage approvals to survey results and legal checks.
When do you exchange contracts?
Once each solicitor is satisfied with the searches, enquiries, and contracts, and once mortgages are confirmed and everyone agrees on a completion date, the exchange takes place. In a chain, all solicitors must be ready at the same time to exchange contracts simultaneously.
What could delay exchanging contracts in a chain?
There are several common hold-ups:
- Missing or slow paperwork
- Unanswered solicitor enquiries
- Delays in mortgage offers
- Survey issues or renegotiations
- People changing their minds
These are just some of the reasons why it helps to stay organised and proactive throughout the process.
What is meant by ‘breaking the chain’?
Breaking the chain usually refers to one party pulling out, which can collapse the whole chain. However, sometimes it’s used positively, like when someone sells to a chain-free buyer or moves into rented accommodation temporarily. This makes the chain shorter and more flexible.
What do we mean by ‘bridging loans’?
A bridging loan is a short-term loan that lets you buy a new home before selling your old one. It’s useful if your sale falls through or is delayed but comes with higher interest rates and fees, so should be carefully considered and discussed with a financial adviser.
How to exchange contracts in a property chain
Do your part – Organising documents and enquiries
Make sure your paperwork is in order from the start. Your solicitor can’t do much until they have your ID, signed forms, mortgage details, and answers to property enquiries.
Keeping up good communication
Stay in regular contact with your solicitor and estate agent. Prompt responses keep things moving and show everyone you’re serious.
Being patient
Even with the best intentions, others in the chain may experience delays. Your solicitor can’t exchange until all the parties are ready, so some patience goes a long way.
Sending off contracts
Once everything’s agreed and reviewed, you’ll sign your contract and send it to your solicitor. They’ll hold onto it until everyone else is ready to exchange.
Setting a completion date
Before exchanging, all parties agree on a date to complete — that’s when keys are handed over and you can move in. It’s usually a week or two after the exchange, but it can vary.
Are you looking to sell your home?
If you’re planning to move and want expert support, local insight, and a smooth sales journey, we can help. Whether you’re at the start of the process or stuck in a chain, our experienced agents can guide you through.
Get started with a free property valuation.
Useful links
- Buying a property with Whitegates
- Mortgages and financial advice
- What does SSTC (Sold Subject to Contract) actually mean?
- Help for first-time buyers
- How do down valuations affect your house sale?
