Posted on: 23 May 2016
When you are ready to submit your offer and if the landlord/ seller accept 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:
Property
Including what rights the buyer will have and if it is a freehold or leasehold
Parties Details
Including who is the buyer/lessee, who is the seller/lessor and their details, solicitors may also be named
Money and Timing
Including purchase price, deposit, target dates for completion and planning permission details
Lease details
Including rental period, rental price, security responsibilities and maintenance responsibilities
You are ready to exchange contracts providing:
- 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 money has 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.
Tip: When purchasing a commercial property, it is usually the responsibility of the buyer to insure the property between the exchange of contacts and completion. This is usually highlighted in the Head of Terms.
View our full business premises guide here or browse through the content below to learn more.
- Making the decision to move premises
- Taking a business lease
- Taking a business licence
- Buying business premises
- Finding the right premises
- Building surveys for business premises
- Planning permission for business premises
- Business premises insurance
- Additional costs of business premises
- Making an offer on business premises (You are here)
- Moving business premises
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