Can Anything Go Wrong After Exchange? 

Once you’ve exchanged contracts, the finish line is in sight. At this stage, the agreement is legally binding. If either party pulls out now, they face severe financial consequences, including the loss of the deposit. While it’s rare for a sale to collapse after exchange, it’s important to understand the remaining risks and the protections you have in place. 

Legal vs logistical risks 

After exchange, the risks shift from negotiation issues to practical or logistical ones. Because the law is now firmly on your side, most issues that arise are treated as a breach of contract rather than a reason to cancel the deal. 

In very rare cases, a seller may struggle to move out on the agreed completion date. This is a breach of contract, and the seller may be liable for your costs, such as removal van delays or temporary accommodation. 

The most common issue involves the transfer of mortgage funds. Whether due to a banking system delay or a final administrative check by the lender, these are usually resolved within hours. 

If a pipe bursts or a window is broken between exchange and completion, the seller is typically responsible for handing over the property in the same condition it was in at exchange. However, you must ensure your buildings insurance is active from the date of exchange, as the risk usually passes to the buyer at this point. 

For more on when insurance is required, see our guide on what are exchange and completion. 

What if a new defect is discovered? 

Because surveys and legal enquiries are completed before exchange, last-minute defects are uncommon. However, if a serious issue is discovered during this window, your solicitor will advise you on contractual remedies. Typically, this involves the seller fixing the issue before completion or agreeing to a price reduction to cover the repair costs. 

The security of a binding contract 

The key takeaway is that exchange provides you with a powerful safety net. The seller cannot gazump you by accepting a higher offer, and you cannot be left stranded without legal recourse. If the other party defaults, your solicitor is empowered to enforce the contract or claim losses on your behalf. 

Next steps 

At Setfords, our residential property solicitors take exhaustive care during the pre-exchange phase to ensure that potential pitfalls are neutralised before you sign. 

We ensure all surveys, searches, and mortgage conditions are satisfied before recommending exchange. We make sure your contract includes the necessary clauses to hold the other party accountable if things don’t go to plan. And if a completion day issue occurs, our team acts quickly to liaise with the other side and the banks to get your move back on track. 

Get your free conveyancing quote today 

What you can expect with Setfords

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