It is not until Contracts are exchanged that there is any binding agreement. Until that time, either the Buyer or the Seller can withdraw. After exchange of Contracts, each party is bound. In practice, it is impossible for either party to withdraw after exchange of Contracts. A Buyer who fails to complete a transaction after Contracts have been exchanged, might well lose his deposit, and a Seller could be made to pay damages to the Buyer.
Completion comes at some time after exchange of Contracts.
On that day, the ownership of the house passes from the Seller to the Buyer with removals usually taking place around midday. The Seller's Solicitors obtain the Seller's Title Deeds and prepare a Contract which they send to the Buyer's Solicitors. The Buyer's Solicitors send off Local Searches unless the Seller's Solicitors have already done so. These are a list of questions to the Local Authority. The main purpose of these questions is to find out if the Local Authority intends to exercise its powers in any way which might adversely affect the property.