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• Exchange of Contracts and Completion When Selling a Commercial Property

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Exchange of Contracts and Completion

You are ready to exchange contracts with the proposed purchaser of the commercial property when:

• Both seller and buyer are satisfied with the contract and searches
• Any conditional planning permission has been granted
• The surveyor or solicitor has made all the necessary checks and satisfactory inspections on the building
• The required funds have been raised by the buyer to exchange and complete the transaction

Until contracts have been exchanged, you can choose to sell to another interested party unless a lockout agreement has been entered into.

This law is different in Scotland – a lockout agreement is not required. There is no legal compulsory contract between two parties, meaning until the contract has been concluded, either party can walk away from the deal without any penalty.

Completion is usually a month later but can be varied prior to exchange of contracts. This again will be outlined in the HOTS. When the balance is paid, the contract is completed.