Which statement best describes Formula B exchange in conveyancing practice?

Which statement best describes Formula B exchange in conveyancing practice?

• A. Each conveyancer holds their own client contract, both undertake to send contracts
• B. One conveyancer holds both clients contracts, and undertake to send the contract to the other side
• C. Use in linked/chain transactions - conveyancer releases the contract for a fixed time
• D. The contracts are exchanged without undertakings

Answer: (A)

Formula B exchange is where each conveyancer keeps their own client’s contract and undertakes to send it to the other side’s solicitor. This setup keeps the two contracts separate while creating a formal commitment to exchange: each solicitor promises to deliver the relevant contract to the other side at the moment of exchange, making the agreement binding for both parties. The undertakings are essential because they provide a clear, bilateral promise that the contracts will be exchanged and the deal will proceed absent last‑minute withdrawal. This differs from arrangements where one solicitor holds both contracts, and from any scenario where there are no undertakings, both of which reduce protection and certainty around the exchange.

Formula B exchange is where each conveyancer keeps their own client’s contract and undertakes to send it to the other side’s solicitor. This setup keeps the two contracts separate while creating a formal commitment to exchange: each solicitor promises to deliver the relevant contract to the other side at the moment of exchange, making the agreement binding for both parties. The undertakings are essential because they provide a clear, bilateral promise that the contracts will be exchanged and the deal will proceed absent last‑minute withdrawal. This differs from arrangements where one solicitor holds both contracts, and from any scenario where there are no undertakings, both of which reduce protection and certainty around the exchange.