Exchange and completion
Exchange of contracts is the final step in house purchase, under English law, and occurs after a solicitor has carried out all necessary searches and there is agreement to the contract terms. Once each party has signed the contracts and they have been exchanged, they are legally binding. At exchange of contracts, any deposit needed must be paid, and arrangements for building insurance must be made so that the property is insured from that day.
Completion is the point where the purchaser’s conveyancing solicitor wires the purchaser’s money from their bank to the vendors conveyancing solicitors bank account, the ownership of the property is transferred to the purchaser.