Return to the Mortgage Glossary Home to view explanations for all mortgage terms. What follows is the definition for the term Exchange of Contracts as it relates to mortgages in the UK. Exchange of Contracts(England only) This is the point where the deposit money is paid. At this stage of property purchase becomes legally binding between the buyer and the seller. After contracts have been exchanged the vendor must sell and the purchaser must buy on the terms agreed.
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