You are ready to exchange contracts with the landlord of the commercial property when:
Until contracts have been exchanged, the vendor can choose to let 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 one month after the initial Exchange of Contracts. This date can be varied prior to Exchange of Contracts and again will be clearly stated in the HOTS. Completion is when the balance is paid and the contract is completed. The keys are now yours and you can start to realise or implement your business ambitions.
Obtaining a Lease for a Commercial Property