Usually means: Formal agreement in property transaction.
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We found 4 dictionaries that define the word exchange contracts:

General (4 matching dictionaries)
  1. exchange contracts: Longman Dictionary of Contemporary English
  2. exchange contracts: Wiktionary

Definitions from Wiktionary (exchange contracts)

verb:  (law, England and Wales, Northern Ireland, idiomatic) To formally contract to purchase, sell or otherwise be party to a disposition of an estate in land; usually requiring the payment of a deposit by one of the parties.
verb:  (law, England and Wales, Northern Ireland, chiefly by legal practitioners) To create a contract for the disposition of an estate in land between negotiating parties, by a process which is immediately followed by the exchange of executed counterparts of the contract between each party's legal representative.

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