Exchange and completion are the two key legal milestones when buying a property in England and Wales. They are often confused — they are distinct events that may happen on the same day or weeks apart.
The point at which both parties sign identical contracts and the transaction becomes legally binding. Before exchange, either party can withdraw without penalty. After exchange, withdrawal means the withdrawing party loses their deposit (buyer) or faces a damages claim (seller). The completion date is agreed at exchange.
The day on which the remaining funds are transferred, legal ownership changes hands, and keys are released. This is moving day. Completion typically happens 1–4 weeks after exchange, though same-day exchange and completion (more common in chain-free transactions) is possible.
Buildings insurance must be in place from exchange (not completion) — because you are legally committed to the purchase from this point. Do not give notice on your rental until exchange, not offer acceptance. Use our free first time buyer checklist to track both milestones.