Exchange of contracts is the moment a property transaction becomes legally binding — and the point from which formalities, risk and remedies all flow.
Until exchange, either party can walk away; afterwards, both are locked in, so everything turns on how that moment is reached and what follows from it. This chapter begins with the legal significance of exchange and the statutory formalities a land contract must satisfy, then examines the authority a solicitor needs before exchanging and the consequences of acting without it. It works through the three Law Society formulas for telephone exchange, the binding undertakings they involve, and the matters each side must have in order beforehand. Finally, it covers the passing of risk and the buyer's equitable interest between exchange and completion, before turning to notices to complete and the remedies available when one party fails to complete.
