3. Contract, Exchange, Completion and HMLR
Draft and report on contract terms, exchange safely, manage death or insolvency between exchange and completion and resolve HMLR restrictions and requisitions.
How to study the CPQ Professional stage
Build the independent research and business-report skills required for P1, then prepare the work-relevant tasks in the one P2–P10 pathway on your record.
Core concepts
Concept 1
Standard and special conditions allocate title, risk, deposit, completion and remedy.
Exam cue: Explain every special condition and client consequence.
Concept 2
Exchange creates binding obligations and requires authority, readiness and aligned transaction chains.
Exam cue: Confirm authority, funding, insurance and completion date before exchange.
Concept 3
Post-exchange death, insolvency, restrictions and requisitions require prompt route-specific action.
Exam cue: Answer requisitions with evidence and within priority deadlines.
Risk pitfalls and guardrails
Exchanging on incomplete instructions.
Guardrail: Do not study all nine pathways as mandatory, treat P1 as a timed exam, confuse passage with authorisation or rely on outdated law, tax, procedure or regulator guidance.
Assuming death automatically terminates the contract.
Guardrail: Do not study all nine pathways as mandatory, treat P1 as a timed exam, confuse passage with authorisation or rely on outdated law, tax, procedure or regulator guidance.
Letting the priority period expire while addressing a requisition.
Guardrail: Do not study all nine pathways as mandatory, treat P1 as a timed exam, confuse passage with authorisation or rely on outdated law, tax, procedure or regulator guidance.
Memory anchors
Exchange check
Title, terms, funds, authority, insurance and date.
Completion event
Contract, party status, risk, remedy and evidence.
HMLR response
Requirement, defect, document, evidence, deadline and priority.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
A special condition shifts all risk of an occupied outbuilding to the buyer. What should happen before exchange?
The buyer has not approved the final contract, but the chain demands immediate exchange. What should the conveyancer do?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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