Exclusivity Agreement Conveyancing

An exclusivity agreement may allow the buyer to recover his expenses if the seller does not comply with one of his obligations. Similarly, a seller may include a provision in such an agreement to impose a fine or a fee determination if the buyer does not comply with his obligations, when this is more difficult to quantify and implement. Conclusion It is important to make your seller understand at an early stage that you expect a lockout if your offer is accepted and that it is useful to indicate the reasons. If this is negotiated correctly at the beginning, we could immediately submit a lockout contract, and there is no reason why it should not be signed within a few days, so that you have the “rest room” needed to conclude your survey and financial arrangements without fear that someone else might buy the property. An exclusivity agreement, also known as a lockout agreement, is an agreement between the parties that provides certain restrictions on the provision of goods, services or other transactions, sometimes for a specified period, to other parties other than the terms of the agreement. The agreement must allow the buyer to conduct continuous research, investigations and due diligence on the part of other interested buyers. It prevents a seller from negotiating with another party for a certain period of time, the so-called exclusivity period. Why aren`t they more common? In a busy market, sellers and their agents are reluctant to commit at such an early stage because they want to be free to sell at a higher price, or to another buyer who may be in a better position to sue (for example. B not to arrange a sale or mortgage). In most cases where our customers have requested a lockout, sellers have been advised not to agree. In a declining market, the buyer obviously does not need a lockout contract because he has a large choice of real estate to acquire, but if the buyer thinks there is competition for a particular property, it might be worth it.