Exchange of Contracts takes place when both the buyer and the seller are at a point where they feel that they can both be satisfied that all legal formalities and enquiries and searches have been carried out and that the results are not adverse enough to be forming a delay whereupon both parties can now proceed to agree a ‘Completion Date’. This is the date that the transfer of funds from the buyer to the seller will take place and the deeds and the keys to the property can be handed over to the buyer. When contracts are exchanged they are literally exchanged between the 2 solicitors or conveyancers. The contracts are identical and will have been pre-signed by each party. When contracts are exchanged the sale contract becomes legally binding.