Can I cancel a contract after signing?

You sign your contract before it is formally exchanged so at any time prior to exchange you can cancel your instruction and pull out from buying without incurring the remedies within the contract. If you do cancel a contract after signing it then you will lose any non-refundable reservation deposit you paid the seller.

What are the buyer's and seller's other rights and remedies?

The buyer's and seller's remedies are not restricted to the losses under standard terms of contract. There is nothing preventing the person who didn't pull out from suing for breach of contract if they sustain other losses such as: Conveyancing fees including solicitor's legal fees, property searches, ID costs, OS1 and bankruptcy searches Mortgage costs including product fee, mortgage broker fees and mortgage valuation Survey costs including Building Survey/HomeBuyer Report, damp & timber survey, asbestos survey Drafting a new rental lease if the buyer/seller has to extend their lease Rental charges from Landlord for over staying their lease Drafting a new rental lease if the buyer/seller has to extend their lease Deposit paid for removals

What are the solicitor fees when buyer pulls out?

The buyer will have to pay their own solicitor's legal fees if they pull out after exchange of contracts. The buyer may have insurance to protect them against these costs.

We explain what can go wrong between exchange and completion, what happens if either seller or buyer fail to complete and the costs of pulling out after exchange of contracts.

We can help you pull out of exchange of contracts.

Can I pull out after exchange of contracts?

by:

Andrew Boast

Last Updated: 10/08/2026

Read by:

30,134

6 min read

Exchanging contracts is the point of no return in a property transaction. Once you and the other party have exchanged, the agreement becomes legally binding. However, circumstances can drastically change, leaving many buyers and sellers asking: can I pull out after exchange of contracts?

The reality is that you can pull out, but doing so means you are in breach of a legally binding contract, and there are severe financial penalties for the party that defaults. The costs for failing to complete typically include paying the other side's notice to complete legal fee, daily penalty interest, and the specific penalties outlined under the contract.

Key Takeaways

It is legally binding: You can pull out after exchange, but you will be in breach of contract and face severe financial consequences.
Buyer penalties: If a buyer pulls out, they will lose their 10% exchange deposit, pay daily penalty interest, and cover the seller's legal fees.
Seller penalties: If a seller pulls out, they must return the buyer's deposit with accrued interest and could be sued for damages.
Insurance protection: A Home Buyers Protection Insurance Policy can help cover your expenses if you are forced to pull out due to circumstances beyond your control.

In this article

What can go wrong between exchange and completion?

The risk of either the seller or buyer pulling out is incredibly low. However, here are a few examples of what can go wrong between the exchange of contracts and the day of completion:

Either the buyer or seller simply changes their mind;
Either the buyer or seller is found to be committing a criminal offence;
The buyer's mortgage offer is pulled or expires, and they are unable to secure further finance (this was a high risk during COVID and the October 2022 mortgage crisis); or
The sudden death of one of the parties.

You may wish to consider taking out a Home Buyers Protection Insurance Policy, which can cover your legal and surveying expenses if you are forced to pull out under certain circumstances that are entirely beyond your control.

The penalties under the contract of exchange

The penalties for breaching the contract differ depending on whether it is the seller or the buyer who pulls out. These rules are governed by the Standard Conditions of Sale.

Buyer pulls out after exchange	Seller pulls out after exchange
7.4 Buyer's failure to comply with notice to complete 7.4.1 If the buyer fails to complete in accordance with a notice to complete, the following terms apply. 7.4.2 The seller may rescind the contract, and if he does so: (a) he may: (i) forfeit and keep any deposit and accrued interest (ii) resell the property and any contents included in the contract (iii) claim damages (b) the buyer is to return any documents he received from the seller and is to cancel any registration of the contract. 7.4.3 The seller retains his other rights and remedies.	7.5 Seller's failure to comply with notice to complete 7.5.1 If the seller fails to complete in accordance with a notice to complete, the following terms apply. 7.5.2 The buyer may rescind the contract, and if he does so: (a) the deposit is to be repaid to the buyer with accrued interest (b) the buyer is to return any documents he received from the seller and is, at the seller's expense, to cancel any registration of the contract. 7.5.3 The buyer retains his other rights and remedies.

Buyer pulls out after exchange

Seller pulls out after exchange

7.4 Buyer's failure to comply with notice to complete

7.4.1 If the buyer fails to complete in accordance with a notice to complete, the following terms apply.

7.4.2 The seller may rescind the contract, and if he does so:

(a) he may:
(i) forfeit and keep any deposit and accrued interest
(ii) resell the property and any contents included in the contract
(iii) claim damages

(b) the buyer is to return any documents he received from the seller and is to cancel any registration of the contract.

7.4.3 The seller retains his other rights and remedies.

7.5 Seller's failure to comply with notice to complete

7.5.1 If the seller fails to complete in accordance with a notice to complete, the following terms apply.

7.5.2 The buyer may rescind the contract, and if he does so:

(a) the deposit is to be repaid to the buyer with accrued interest

(b) the buyer is to return any documents he received from the seller and is, at the seller's expense, to cancel any registration of the contract.

7.5.3 The buyer retains his other rights and remedies.

What is the process to pull out after exchange of contracts?

1Exchange occurs: Exchange of contracts takes place for a legally binding, future completion date.
2Notice is served: The buyer is unable to complete on the day of completion, so the seller's solicitor serves a 'Notice to Complete' (usually at 2:00 PM on the day of completion). The buyer then has 10 working days to find the funds and complete.
3Contract is rescinded: If the buyer is still unable to complete after the 10 working days expire, the seller formally rescinds the contract, keeps the 10% deposit, and pursues the buyer for their legal fees and any further damages.

Because of the severe risks involved if either party fails to complete, it is strongly advised not to give the buyer access to the property before completion.

Example of the costs if a buyer pulls out after exchange:

Here is an example of the financial impact if a buyer pulls out after exchanging contracts on a £500,000 property:

Loses their 10% exchange deposit of £50,000
Pays daily penalty interest (typically 4% above the Bank of England base rate). For example, £770.54 (£450,000 balance * 6.25% / 365 x 10 days)
Covers the seller's legal fees of £1,500

In this example, it has cost the buyer a staggering £52,270.54 to pull out after exchanging contracts.

Need help pulling out of a purchase contract?

We have specially trained solicitors on hand to help you if you need to pull out after the exchange of contracts. If you need urgent help with your exchange contract, please email us at help@samconveyancing.co.uk providing the following information:

Your full name and contact number;
A copy of your exchange contract;
Confirmation of your exact reason for pulling out; and
Any further evidence to support your case.

Upon receipt, we will get in contact and provide a quote for the urgent legal work required. Alternatively, you can call us at 0333 344 3234 (local call rate) or get in touch using the button below:

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Written by: Andrew Boast

Andrew Boast FMAAT is a qualified accountant, conveyancing specialist and author with over 25 years of experience in the UK property sector. Since beginning his career in 2000 within established SRA and CLC-regulated conveyancing solicitor firms, Andrew has overseen the legal journeys of more than 75,000 clients.

He is the self-published author of the first-time buyer guide: How to Buy a House Without Killing Anyone, and a frequent contributor to mainstream UK media on legislative updates, property law, first-time buyer guides, conveyancing best practices, and stamp duty changes. Andrew specialises in resolving complex title issues, property conflict disputes, and property tax options, streamlining the enquiry process to reduce transaction times and maintaining a client-friendly focus.

Reviewed by: Amanda Ambler

Amanda Ambler is a highly accomplished conveyancing specialist with over 15 years of dedicated experience across residential property law, legal compliance, and practice management. Having held senior roles, including Head of Legal Practice and Head of Conveyancing at established UK law firms, Amanda possesses a profound, hands-on understanding of the technical intricacies of the property market.

As the designated Legal Content Reviewer for SAM Conveyancing, Amanda ensures that every guide, legal update, and resource published meets the absolute highest standards of accuracy, regulatory compliance, and factual integrity. Her rigorous review process guarantees that complex property legislation and industry processes are communicated clearly, transparently, and safely for home buyers and sellers alike.