Exchange of contracts is the turning point in every property transaction. Before it, either side can walk away; after it, the parties are legally bound, the deposit is payable, and risk shifts. As a solicitor, you act on the standard conditions every day, and your client relies on you to explain what these key terms mean for their money, their property, and their options if things go wrong.
This lesson takes you through the terms that come alive at exchange and the remedies that follow if a party defaults.
- Exchange, Completion and the Deposit — what makes a land contract valid, why exchange matters, and how the deposit is held and the completion date set.
- Risk, Fixtures and Chattels — when risk passes to the buyer, why insurance matters, and which items pass with the property.
- Incumbrances and Title Guarantee — the seller's duty to disclose and the three levels of title guarantee and what each one promises.
- VAT and TOGC — how VAT applies to residential and commercial sales, the option to tax, and the transfer of a going concern.
- Notice to Complete and Remedies — making time of the essence and the remedies available on breach.
- Misrepresentation and Limitation — entire agreement clauses, the limits of excluding liability, and the time limit for bringing a claim.