190. The effects of exchange.

Exchange of contracts creates a binding contract from which neither party may normally withdraw without incurring liability for breach1.

The beneficial ownership in the property passes to the buyer who becomes entitled to any increase in value of the property, but also bears the risk of any loss or damage2. The Standard Contractual Conditions3 pass risk to the buyer on exchange of contracts.

The seller retains the legal title to the property until completion, but holds the beneficial interest as a constructive trustee on behalf of the buyer4. The buyer has the right to dispose of his equitable interest in the