Business Premesis Guide: Making an offer
When you are ready to submit your offer and if the landlord/ seller accepts it, you should request that he or she will no longer negotiate with other parties. This is called a lockout agreement.
A Head of Terms (HoTs) will be drafted by your solicitor; this is not a legally binding contract but highlights the terms of your contract with the landlord or seller of the property. It will usually include details of:
Only when the following items have been completed are you ready to exchange contracts:
- Satisfactory inspections have been done on the building by your solicitors or surveyors
- Tenant and landlord/ buyer and seller are satisfied with the contract
- Any conditional planning permission has been granted
- Necessary monies have been raised to exchange and complete the transaction
Completion is usually around one month after the initial exchange of contracts and this date should be clearly noted in the Head of Terms.