exchange contracts
In real estate transactions, 'exchange contracts' refers to the formal process where both parties sign and swap copies of the contract, making the agreement legally binding.
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Definition
C1Real Estate
(formal, legal)The formal process where buyer and seller sign and swap copies of a contract to make the agreement legally binding.
Example
- Once we exchange contracts, neither party can back out without facing penalties.
C2Law
(technical, legal)The legal procedure where parties in a transaction sign and swap executed copies of a contract, confirming mutual consent and obligations.
Example
- The solicitors arranged to exchange contracts, finalizing the sale of the property.
Similar
Terms that have similar or relatively close meanings to "exchange contracts":
exchange of contractscontract systemex contractupart exchangein exchangestraight trade