Which matter is addressed at exchange of contracts on the properties?

• A. Building insurance
• B. Use of deposit
• C. Agreed completion date
• D. Record Keeping (memo of exchange)

Answer: (D)

At exchange, the key action is to formalise the deal and put a concrete record around the agreed terms. The memo of exchange serves as the official record of what has been agreed, capturing essential details such as who is buying and selling, the property, the price, how the deposit is to be handled, and the completion date. This creates a binding contract and provides a single, enforceable document for both parties (and lenders) to reference, preventing later disputes about what was agreed. While topics like building insurance and deposit handling relate to the contract terms, the primary purpose of exchange is to establish this formal record through the memo of exchange.