Exchange of contracts is the pivotal moment in any property transaction: the point at which negotiations turn into a binding deal that neither party can walk away from. For a solicitor, it is also a moment of real responsibility — exchanging without proper authority, missing a pre-exchange check, or mishandling an undertaking can leave both your client and you personally exposed. Getting this right protects your client and keeps you on the safe side of your professional duties.
This lesson takes you through exchange from start to finish:
- Significance and Formalities of Exchange — what exchange does, the position before it, and the requirements for a valid land contract.
- Authority to Exchange — why express client authority is essential and what happens if you proceed without it.
- Methods of Exchange — the three Law Society formulas and when each is used, including chains.
- Undertakings, Timing and Preparation — when the contract binds, the force of undertakings, and the buyer's and seller's pre-exchange checklists.
- Risk and the Buyer's Equitable Interest — how risk passes, the interest the buyer gains, and the seller's duties before completion.
- Failure to Complete and Remedies — notices to complete and the remedies available to each party on default.