You are ready to exchange contracts with the proposed purchaser of the commercial property when:
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.
Selling a Commercial Property – Heads Of Terms (HOTS)