Is a Lock Out Agreement an appropriate solution for achieving the required balance of interests between Buyer and Seller? The Buyer understandably does not wish to go to the trouble and expense of dealing with all these issues only for the Seller to change their mind and withdraw at the last moment. The Buyer is likely to need time to arrange mortgage finance, have a survey and possibly conclude a related sale where part of the purchase price for the Property is being raised from the sale of an existing property.

In a straightforward conveyancing transaction the Seller’s solicitor deduces title to the Buyer’s solicitor and the Buyer’s solicitor investigates title, undertakes property searches, raises pre-contract enquiries, checks planning history and then delivers a Report to the Buyer advising on all the terms, rights and conditions that affect the transaction. The Buyer requires sufficient time to conclude due diligence to ensure that the property being sold by the Seller is the same Property that the Buyer believes is being acquired. The Seller requires certainty and wishes to know that by X date in the future the Buyer will complete the purchase for the agreed price. It is tempting to view the use of a Lock Out Agreement as a suitable device for holding the parties to their word until such time as the mechanics of the conveyancing process catch up and deliver a formal Exchange.Īs with any commercial transaction a balance of interests between the parties needs to be struck. This means that a “handshake” agreement is not binding and has no effect if one party seeks to renege on a promise. Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 requires a valid contract for the sale and purchase of land to be in writing, incorporating all the terms which the parties have expressly agreed in one document or, where contracts are Exchanged, in each. Lock Out Agreements – Help or Hinderance? Conveyancing, Property & Business Services.Modern Families And Surrogacy Arrangements.Services For Residential Landlords And Agents.Services For Commercial Landlords, Tenants And Agents.

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