Exchange of contracts

When you're buying or selling a home (or any other big asset), the "exchange of contracts" is the all important moment when the transfer of title/ownership happens.

So, if you're having second thoughts about buying or selling your home it'll be too late to back out of the deal once contracts have been exchanged. The exchange of contracts is usually followed days or weeks later by the completion date, but the two stages in the homebuying process can be combined.

In the exchange of contracts, the buyer signs the contract for sale and sends it to the seller who also signs it - both parties are then legally bound to complete the transfer.

At this point the buyer should insure the property.

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See also: Financial Services, Mortgages